What to Expect From Apple's Second Quarter Earnings Results Today

[MacRumors]

Apple is set to report its earnings results for the second quarter of its 2019 fiscal year at 1:30 p.m. Pacific Time today.

The quarter began December 30, 2018 and ran through March 30, 2019, according to Apple's fiscal year accounting calendar.

Apple's guidance for the quarter from January 29:revenue between $55 billion and $59 billion
gross margin between 37 percent and 38 percent
op. ex. between $8.5 billion and $8.6 billion
other income/expense of $300 million
tax rate of approximately 17 percent before discrete itemsApple's guidance suggests that it will report at least its third-best second quarter ever based on revenue:
2015: $58 billion
2016: $50.6 billion
2017: $52.9 billion
2018: $61.1 billion
2019: $55+ billionWall Street analysts forecast that Apple will report $57.4 billion revenue, above the midpoint of its guidance, and earnings per share of $2.36, according to 28 estimates averaged by Yahoo Finance.

What to Look For
Investors will be looking for iPhone revenue and Greater China revenue to rebound after Apple issued its first revenue warning in 16 years last quarter due to fewer-than-anticipated iPhone sales, primarily in the Greater China region. Wall Street expects iPhone revenue to be around $30.5 billion, according to six estimates compiled by Bloomberg News.
Any potential commentary surrounding Apple's settlement and chipset agreement with Qualcomm. Apple is expected to release its first 5G-enabled iPhones in 2020 with Qualcomm and Samsung modems.
Apple's growing services category remains key. Apple's services revenue reached an all-time high of $10.9 billion last quarter, up 19 percent year-over-year. This category includes the App Store, Apple Music, iCloud, iTunes, Apple Pay, and AppleCare. Later this year it will expand to include the Apple Card, Apple Arcade, Apple TV+, and Apple News+.
Apple's stock price has increased by approximately 30 percent since its last earnings report on January 29 and positive results could further support the rally. Many analysts are bullish on Apple, as they believe that Chinese consumer demand rebounded during the quarter.
Apple plans to provide an update on its capital return program on its earnings call today. Many analysts expect a significant increase of between $50 billion and $100 billion and an increased dividend.
Apple's guidance for the third quarter of its fiscal year, which is typically its slowest in terms of revenue.Apple's CEO Tim Cook and CFO Luca Maestri will discuss the company's earnings results on a conference call at 2:00 p.m. Pacific Time today. MacRumors will loosely transcribe the one-hour call as it occurs live.

Article Link: What to Expect From Apple's Second Quarter Earnings Results Today

 

[IRockThat828pScreen]

"Big company make big money"
Color me shocked...

 

[macduke]

Will be interesting to see if China continues to tank their numbers.

 

[iAVERY]

what is this? CNBC?

 

[Joe Rossignol]

what is this? CNBC?

yes

 

[justperry]

In time electronics should get cheaper, not more expensive, my take is that iPhones got too expensive for China, actually for the whole world, but in the rich west it's not as obvious, higher wages/contracts/loans don't actually show how ridiculous pricey new iPhones are, just half a decade ago they were more or less half the price they are now, doesn't stop there, macs also got substantially more expensive in the last 5 years.

Greed/Wall street.....

 

[ryanwarsaw]

what is this? CNBC?

Some people are very interested in this. There is always a bring back the SE thread or maybe you would be better off complaining about the lack of a Mac Pro.

Anyway I bought a few shares when it dipped 2 percent earlier today. Saving a few bullets in case the call doesn't go well and I can average down a bit. I am guessing after the fiasco last year that AAPL is sandbagging and being very cautious with what their last outlook was.

 

[realtuner]

“Wall Street analysts forecast that Apple will report $57.4 billion revenue, above the midpoint of its guidance,“

Of course. Can’t hammer Apple for a ‘miss’ if you don’t first inflate expectations.

 

[DeepIn2U]

Will be interesting to see if China continues to tank their numbers.

Considering Samsung has had a low reported earnings yesterday, lower sales ... I'm expecting China to be more challenging in terms of sales for products and services. I really expect to hear more commentary of changes and endeavours being done in China from Apple.

More of interest is to see negotiations with Modi and in particular any update in Sales, yet more so with launching partnered services within India ... such as iTunesU for India. I see this as a HUGE opportunity for goodwill which will further familiarize Apple not only as a brand, yet a welcomed foreign brand committed to increase education and advance the country further in terms of literacy (prior to last year: illiteracy was close to 60%)! It's changing now since 60% of the market is under 30yrs old ... that's HUGE potential for reoccurring sales of services and products.

India:
Production models expected sales of products to come online.
Target for services to launch there, or at the least more about services revenue therein.
Any new ventures or endeavours within India.

Dividend ... really should be $1US dollar now ... not some 81cents.
Future guidance should be UP.

 

[ryanwarsaw]

In time electronics should get cheaper, not more expensive, my take is that iPhones got too expensive for China, actually for the whole world, but in the rich west it's not as obvious, higher wages/contracts/loans don't actually show how ridiculous pricey new iPhones are, just half a decade ago they were more or less half the price they are now, doesn't stop there, macs also got substantially more expensive in the last 5 years.

Greed/Wall street.....

Yeah they also don't show what the newest 'phones' do. I am sure you can get a candy bar Nokia really cheap. You also realize just about anybody with an investment plan to retire probably has some Apple in it whether they know it or not right?

If you aren't one of those people then can I have a Big Mac, large Coke, with fries, please?

 

[Cosmosent]

Their Long-Term Debt as well !

Last Qtr they reported $93B USD !

 

[Baymowe335]

We will see how China did and if they more aggressive measures taken improved the outlook.

I am interested in:

1) The buyback update.
2) Top line Revenue
3) China Revenue
4) EPS

In that order.
[doublepost=1556650719][/doublepost]

Their Long-Term Debt as well !

Last Qtr they reported $93B USD !

Yes, because they correctly borrowed money for buybacks when cash was stuck overseas. You'll sound foolish if you start trumpeting Apple having a balance sheet, liquidity, or cash problem. They have $130B+ in net cash. Case closed.

 

[ryanwarsaw]

We will see how China did and if they more aggressive measures taken improved the outlook.

I am interested in:

1) The buyback update.
2) Top line Revenue
3) China Revenue
4) EPS

In that order.
[doublepost=1556650719][/doublepost]
Yes, because they correctly borrowed money for buybacks when cash was stuck overseas. You'll sound foolish if you start trumpeting Apple having a balance sheet, liquidity, or cash problem. They have $130B+ in net cash. Case closed.

Agreed on the buyback update.

 

[DocMultimedia]

Buyback and dividend increase. My top two items. Make it good and retirement may be looming large.

I made a risky move and bought a bit more AAPL earlier when it dipped below $200. For better or worse.

 

[ryanwarsaw]

Buyback and dividend increase. My top two items. Make it good and retirement may be looming large.

I made a risky move and bought a bit more AAPL earlier when it dipped below $200. For better or worse.

How could anybody not buy a small amount to spice things up?

 

[Zimmy68]

Umm, iPhones sales are lackluster because of China, not over pricing them.
Apple News Plus is doing gangbusters under the direction of the brilliant Eddy Cue.
Sure our devices are expensive, but you can't put a price tag on Arsenic Free Glass!
AirPods 2? Just wait until they see Airpods 3!

 

[ryanwarsaw]

Umm, iPhones sales are lackluster because of China, not over pricing them.
Apple News Plus is doing gangbusters under the direction of the brilliant Eddy Cue.
Sure our devices are expensive, but you can't put a price tag on Arsenic Free Glass!
AirPods 2? Just wait until they see Airpods 3!

Spoken like a man that has nothing to lose or anything to add.

 

[I7guy]

In time electronics should get cheaper, not more expensive, my take is that iPhones got too expensive for China, actually for the whole world, but in the rich west it's not as obvious, higher wages/contracts/loans don't actually show how ridiculous pricey new iPhones are, just half a decade ago they were more or less half the price they are now, doesn't stop there, macs also got substantially more expensive in the last 5 years.

Greed/Wall street.....

I agree partially. In time older electronics get cheaper. Other electronics get more efficient and cost per unit goes down. Other types of consumer electronics such as oled don't really get that cheaper.

 

[fumi2014]

I would like to see them take a real financial bashing to drain some of the arrogance from a company that has lost its way in recent years. Seems the only thing they're trying to sell these days is Privacy (well, unless you're in China - where Tim's empty platitudes are seen for what they really are.).

The products? A Netflix clone and a credit card.

What imagination.

 

[Naraxus]

More of the same from Timmy & The Boys

Little to no innovation in the Mac lineup. Doubling down on a bad keyboard design. More SJW-ing & platitudes from Tim and more greed from an already greedy company.

 

[Rogifan]

My prediction: it won’t be a great quarter nor a horrible one. Stock might be flat to slightly down. Why I find amusing is Alphabet/Google is down 8% today because of a poor quarter and I see very little about it on major tech sites other than a story about Pixel sales. Pixel is a tiny portion of Google revenues.

 

[realtuner]

More of the same from Timmy & The Boys

Little to no innovation in the Mac lineup. Doubling down on a bad keyboard design. More SJW-ing & platitudes from Tim and more greed from an already greedy company.

Curious which tech companies you think are "not" greedy. Or "less greedy".

 

[ryanwarsaw]

My prediction: it won’t be a great quarter nor a horrible one. Stock might be flat to slightly down. Why I find amusing is Alphabet/Google is down 8% today because of a poor quarter and I see very little about it on major tech sites other than a story about Pixel sales. Pixel is a tiny portion of Google revenues.

Google has certainly added to an over all gloomy market today for sure. Even on slightly positive news I wouldn't be surprised if it dips a bit. Possibly the last chance to buy some sub $200 AAPL.

 

[az431]

More of the same from Timmy & The Boys

Little to no innovation in the Mac lineup. Doubling down on a bad keyboard design. More SJW-ing & platitudes from Tim and more greed from an already greedy company.

Do you know what greedy means? No need to answer; it's a rhetorical question.
[doublepost=1556652919][/doublepost]

My prediction: it won’t be a great quarter nor a horrible one. Stock might be flat to slightly down. Why I find amusing is Alphabet/Google is down 8% today because of a poor quarter and I see very little about it on major tech sites other than a story about Pixel sales. Pixel is a tiny portion of Google revenues.

So somewhere between horrible and great.

 

[Simplifier]

No need to wait for the call, I can already tell you what will happen. Apple will announce that it made so much money that it would be worth the size of a small country, and people and useless analysts will say that Apple is doomed. The stock goes down a few days 5 to 10% and then will go up 40% in 3 months.

Rinse and repeat every three months.