apple The third quarter, which ends in June, is traditionally the company’s slowest sales quarter of the year.
Barclays analyst Tim Long wrote that the “main story” this year won’t be Apple’s earnings but the company’s assessment of the September quarter, which has grown by nearly a third.
Here’s what Wall Street expects from Apple, according to LSEG consensus estimates:
- Earnings per share: $1.35
- income: US$84.53 billion
- Fourth quarter revenue guidance: US$93.39 billion
According to StreetAccount, here are estimates for Apple’s major product lines:
- iPhone revenue: US$38.64 billion
- Mac revenue: US$7.04 billion
- iPad revenue: US$6.61 billion
- Wearable devices, home and accessories revenue: US$7.83 billion
- Service revenue: US$24.05 billion
While Apple didn’t provide official guidance, it provided investors with some data points on what to expect in the September quarter. The company typically releases new iPhones in September, but those revenues typically decline primarily in the December quarter.
“After nearly two years of almost no estimate upgrades, we finally see better prospects for the September quarter,” Long wrote in a note last month.
Investors will be keen to hear what Apple CEO Cook has to say about Apple Intelligence, its long-awaited artificial intelligence play that uses the company’s own chips in servers and devices instead of expensive ones. NvidiaBased on cloud computers.
Apple launched Apple Intelligence in June and released a first preview of some features earlier this week. That’s unlikely to have a significant impact on Apple’s bottom line yet, Long wrote, but it could spur “late-stage” demand for higher-end iPhone 15 models running the service.
Some analysts are watching Apple’s capital spending, which has been soaring as rivals assemble massive server farms for artificial intelligence. But Apple’s strategy of using its own chips in servers appears to be a cheaper approach.
“Edge AI is in its very early stages, with lower capex requirements and faster monetization potential through consumer hardware upgrades, which we believe makes Apple stock particularly attractive,” Raymond James analyst Srini Pajjuri wrote in a July report.
JPMorgan analyst Samik Chatterjee expects Apple to assure investors that the upcoming iPhone replacement cycle will bring better-than-expected revenue thanks to artificial intelligence. Last month he raised his price target on the stock to $265 and gave it an overweight rating.
Chatterjee wrote: “The rise in revenue is in turn driving our expectations for higher EPS, which will likely lead to consensus revisions to full-year earnings and go some way to mitigating investor concerns about valuation multiple premiums. worry.
Apple previously told investors it expected modest growth overall in the fiscal third quarter, with stronger “double-digit” sales growth for its iPad unit, in part due to the release of new iPad models in May. The company also said it expects its profitable services segment, which covers products from iCloud subscriptions to hardware warranties, to grow about 14%.
Bank of America Securities analyst Wamsi Mohan wrote that Apple’s performance in China will be closely watched as second-quarter sales fell 8% year-on-year in the face of increased competition from local companies such as Huawei.
Citi analyst Atif Malik wrote in a July report that “while aggressive promotions during the 618 shopping holiday helped boost iPhone sales,” IDC’s market forecast shows Apple’s sales declining while the Android market continues to grow. China’s growth.
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