Apple Inc. Earnings Consensus Estimate at $10.08 EPS
Apple (NASDAQ:AAPL) is expected to report Q1 earnings after the market close on Tuesday, January 24, with a conference call scheduled for 5:00 pm ET. The consensus estimate is $10.08 for EPS and $38.85B for revenue, according to First Call.
This report marks the first full earnings period since co-founder Steve Jobs stepped down as CEO and since his passing. The stock has been on a roller coaster over the last three months since Apple’s (NASDAQ:AAPL) last earnings report, which included a rare earnings miss for the company. The stock has since re-gained that ground, topping out at an all-time high late last week. Guidance provided for Q1 was EPS around $9.30 on revenue of about $37B. Gross margin was guided to approximately 40% with OpEx at approximately $3.25B. This will be the first reporting period to include the new iPhone 4S, which went on sale in October with a strong launch. It is also the first time the company has made one of its iPhone models available free of charge to consumers who sign a two-year wireless contract. The iPhone 5 is expected to come this summer in a new form factor.
On average, analysts are expecting a little more than 30M iPhones to ship in the quarter, with iPad shipments between 13M-14M, on average. Mac unit shipments are expected to come in a little over 5M for the period. The iPad is a little more of a question mark, as it faced a competitive threat in the December quarter from Amazon’s (NASDAQ:AMZN) Kindle Fire. Apple (NASDAQ:AAPL) is widely expected to unveil an iPad 3 sometime in the next few weeks, and most analysts believe the device held up well under increasing competition. The iPad may also have an effect on the company’s forecast for the March period. Some analysts are modeling iPad sales to be down 25% quarter-over-quarter on account of a potential iPad refresh in March; however, Apple (NASDAQ:AAPL) could guide conservatively, particularly if — like the iPhone4S — the refresh takes place in April rather than early March.
Apple (NASDAQ:AAPL) tends to guide conservatively — about 10% below the Street’s consensus on earnings and 2% below on revenue. Piper Jaffray’s Gene Munster says that if you assume that pattern holds, Apple’s (NASDAQ:AAPL) FQ2 guidance this afternoon should look something like this: Revenue: $31.3B (2% below the Street’s $32.04B view) and EPS $7.20 (10% below the Street’s $8.03). The conference call will give Wall Street another dose of CEO Tim Cook, who will likely face a battery of questions on future product launches, such as a potential Apple television and the iPad 3.
Competitors to Watch: Hewlett-Packard Company (NYSE:HPQ), Dell Inc. (NASDAQ:DELL), Google Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Lenovo Group Limited (LNVGY), Adobe Systems Incorporated (NASDAQ:ADBE), Intl. Business Machines Corp. (NYSE:IBM), Intel Corporation (NASDAQ:INTC), Super Micro Computer, Inc. (NASDAQ:SMCI), and Nokia Corporation (NYSE:NOK).
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