After the closing bell on August 1, Apple Inc. (NASDAQ:$AAPL) is scheduled to report its third quarter earnings. Many speculate this report will show that Apple – a $774 billion giant – has even more money in the bank.
What can investors expect from Apple’s third quarter earnings?
Well, for starters, the California-based company is expected to report adjusted earnings of $1.57 per share on revenue of $44.89 billion in the June quarter, according to Thomson Reuters. This is significant as it is a 10.7% jump in earnings per share and a 6% increase in revenue from this time last year.
Unlike other tech companies, it doesn’t seem to bother analysts about whether or not Apple will beat expectations for the third quarter. In fact, analysts have even said that they just “want to get [this quarter] over with.”
One analyst at Maxim Group had a different take on the matter. According to Nehal Chokshi, this third quarter has been a “lame-duck quarter.” Elaborating further, Chokshi said: “It doesn’t really matter what they say or do. And this is because everybody knows that the June quarter results, you know – we’re at the end of the product cycle. And everybody gives them a pass for whatever results they’re going to provide.”
For the most part, it seems that analysts will be focusing primarily on what Apple has planned for September, with the upcoming iPhone 8. Although the iPhone is not set to be launched until this fall, Wall Street analysts still forecast that the unannounced device will have a massive impact on the company’s June-quarter earnings.
Wall Street analysts will be looking for iPhone sales, and seeing whether or not there is a “pause” in purchases due to the anticipation for the iPhone 8. If you didn’t already know, the 10th anniversary iPhone is expected to introduce game-changing new features like brighter, edge-to-edge screens and AR capabilities. In addition, there seems to be a handful of people with sixth-generation iPhones due for an upgrade.
“While not anticipated by us, we believe any ‘hiccups’ in June results, would be glossed over as investors focus on the upcoming iPhone launch,” said senior research analyst Michael Olson. “We do not expect investors will be overly unnerved by an outlook that is slightly below consensus, given the widespread news flow around potential for next gen iPhone delays.”
Featured Image: twitter
