Latest News

Apple beats on revenue and profit, expects growth to accelerate despite ‘pockets of softness’


In this article


Apple CEO Tim Cook walks during Apple’s annual Worldwide Developers Conference in San Jose, California, June 6, 2022.
Peter Dasilva | Reuters

Apple will report earnings on Thursday for its fiscal third quarter ending in June.

Here’s what Wall Street is expecting, according to Refinitiv consensus estimates:

EPS: $1.16 expectedRevenue: $82.81 billion expected

Investors will look to Apple’s fourth-quarter guidance for any signs of global consumer weakness around the world. Other vendors of PCs and smartphones have said during the quarter that sales are slowing, but mostly in the low-end market as opposed to the expensive price tiers Apple focuses on.

Analysts are expecting the company to give fourth-quarter guidance of $1.31 in earnings per share and nearly $90 billion in sales.

Apple hasn’t provided guidance since the start of the pandemic in early 2020, and has instead offered some data points that suggest where its revenue and earnings will land.

Apple investors will focus on the company’s business in China, which is not only a significant market for sales but also where most of its products are assembled.

Analysts polled by FactSet predict that Apple’s Greater China sales will be around $13.79 billion, which would represent a decline from the $14.56 billion in sales a year ago.

Apple warned in April that its revenue would be negatively affected by about $4 billion to $8 billion because of supply issues, including chip shortages. Several of Apple’s supply chain facilities had production shifted or canceled as part of China’s Covid restrictions during the quarter.

Investors will also want to keep an eye on Apple’s quickly growing and profitable services business, which includes monthly subscriptions, payment fees, warranties, search licensing fees from Google, and revenue from the iPhone App Store.

Analysts surveyed by FactSet predict Services to be up 12% year-over-year, a decline from the 17% growth it posted in the second quarter and down from the 27% growth it posted in 2021.

Instagram rolling back changes after Kardashians slammed the app for being like TikTok

Previous article

Petrobras Unveils $17 Billion Dividend Windfall on Oil Rally

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News