Can Apple Continue to Hit Home Runs? Revenue Analysts Think So
Tech giant Apple (NASDAQ:AAPL) is set to release earnings information for the most recent quarter, and by analysts’ accounts, the company is expected to crush expectations. According to calculations from 139 analysts at Estimize, expected are earnings of $1.29 per share and revenues of $38.81 billion. This is well ahead of what many Wall Street analysts are expecting to see, according to Investing.com.
As for those Wall Street estimates, reports from the International Business Times indicate that the company is expected to report earnings per share of $1.23 for the third quarter of 2014, along with revenues of $37.93 billion. That represents a significant boost from the same time a year ago, when earnings per share leveled out at $1.05 on revenues of $35.32 billion.
“Apple is always very good at managing the expectations of the Street, and then they come in and just blow the projections and the expectations out of the water,” Keith Bliss, senior vice president of Cuttone & Co. Inc., said to the International Business Times.
No matter what forecast investors are looking at, Apple is riding a big wave of momentum. Profitability is up and shareholders are seeing good returns on their holdings. There are numerous things acting as a catalyst propelling the company forward, including increased sales in overseas markets, namely China, as well as the company’s ever-popular iPhone.
Another impressive earnings report would mark the fifth straight quarter Apple has beaten analysts’ expectations. By digging into the specifics, financial site Bidness Etc. has been able to take a look at where exactly Apple is pulling in the most revenues. The results aren’t all that surprising, but still quite impressive. The iPhone contributed a hefty 57 percent of Apple’s overall revenues and maintained year-over-year growth of 15 percent, all the while moving just under 36 million unites in the third quarter.
This is partly due to Apple’s iPhone strategy, which calls for new versions to be released every year or so. The iPhone 6 is on the way, and like clockwork, Apple fans are sure to line the block to be among the first to own the new device. Even as older versions become outdated and undesirable by most in the American markets, they still have appeal in developing parts of the world, along with lower-priced phones like the iPhone 5C.
The iPad had a lackluster quarter compared to earlier this year but still managed to chip in $7.61 billion worth of revenue, good enough for 18 percent overall.
As for where Apple is pulling in money, the United States, Canada and Europe account for two-thirds of revenue. China is where Apple is really setting its sights, as the numbers from Asia show the most promise and potential for growth. In April, the company revealed it had pulled in a record $10 billion from the Chinese market, meaning Apple’s presence is due to be intensified.
For investors, all signs indicate a great earnings report out of Apple headquarters. Although the company remains locked in mortal combat with several other high-profile companies – Google (NASDAQ:GOOG)(NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Samsung (SSNLF.PK), to name a few — Apple is still holding its own and exceeding expectations.
When the numbers are released, we’ll see exactly how far past analysts’ expectations the iPhone maker has gone this time.