Apple to Report Earnings After Market Close, What to Expect
Image courtesy of 123rf.com

Apple to Report Earnings After Market Close, What to Expect

Apple will report Q2 earnings today; analysts expect lower revenue and EPS.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Apple Inc. (NASDAQ: AAPL) will report its fiscal second-quarter earnings on May 2, 2024, after the market closes. Analysts expect the tech giant to post earnings per share (EPS) of $1.50, slightly lower than the $1.52 reported in the same quarter a year ago.

The company is projected to generate revenues of $90.36 billion, marking a decrease from the previous year’s figures.

Apple’s Upcoming Earnings: Key Details and Expectations

As the earnings announcement approaches, investors and analysts will closely monitor key performance metrics, including iPhone sales, particularly in the crucial Chinese market, and advancements in artificial intelligence (AI) technology.

The market sentiment surrounding Apple’s earnings is relatively low, given the company’s recent underperformance and a significant year-to-date stock price decline.

What to Look Out for in Apple’s Upcoming Earnings Results

One of the most critical focus areas will be iPhone sales, which are expected to decline compared to the same quarter last year.

The Chinese market, where sales have been feeble, will be under the microscope. Another critical segment to watch is services revenue, which has been a growth area for Apple and contributes significantly to overall profits. Growth in this segment will be a crucial indicator of the company’s overall health.

Updates on Apple’s AI initiatives and any new AI integrations will also be closely watched, as they could impact future growth trajectories. Additionally, forward-looking statements and guidance for upcoming quarters will be crucial for assessing future performance expectations.

Potential announcements regarding stock buyback programs or dividend changes could influence investor sentiment and the stock price.

As of the time of writing, Apple’s stock price was approximately $171.94, experiencing a slight increase of 1.56% in early trading hours. However, the stock has seen a decline of about 10.57% year-to-date, underperforming relative to broader market indices like the S&P 500.

Despite recent declines, Apple’s market capitalization remains around $2.61 trillion, maintaining its position as one of the largest companies by market cap. Analyst sentiment is mixed, with some projecting modest rebounds based on low valuation levels and potential positive surprises in earnings results.

Do you think Apple will post better-than-expected results for its fiscal Q2? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.