Today, Apple will release its Q2 earnings report; analysts anticipate declined revenue and EPS.
The market will shut down on May 2, 2024, after Apple Inc.’s (NASDAQ: AAPL) fiscal second-quarter results announcement. After reporting $1.52 in the same quarter last year, analysts are projecting that the IT giant will generate slightly lower earnings per share (EPS) of $1.50 this quarter.
Preliminary estimates put the company’s sales at $90.36 billion, down from last year’s numbers. Important performance indicators, such as iPhone sales (especially in the vital Chinese market) and AI developments, will be eagerly watched by investors and experts as the earnings release draws near.
Apple’s recent underperformance and a substantial year-to-date decline in its stock price have contributed to a relatively pessimistic market sentiment regarding the company’s earnings.
iPhone sales are anticipated to decrease in comparison to the corresponding quarter of the previous year, constituting a pivotal area of emphasis.
The focus will be on the Chinese market, which has experienced lacklustre sales performance thus far. Revenue from services is another important metric to track, as it has been a source of growth for Apple and a major contributor to the company’s bottom line. A key measure of the company’s health will be the growth of this area.
Potentially influencing future growth trajectories are updates on Apple’s AI projects and any new AI integrations. For the purpose of evaluating anticipated future performance, forward-looking comments and quarterly guidance are also essential.
A change in dividend policy or news of a stock repurchase program could influence market sentiment and the stock price.
Early trading hours witnessed a marginal increase of 1.56% in the price of Apple’s stock, which stood at approximately $171.94 at the time of writing. But compared to more general market indexes like the S&P 500, the stock’s 10.57% year-to-date fall is disappointing.
In spite of recent drops, Apple is still one of the biggest firms in terms of market worth, with a valuation of over $2.61 trillion. Due to low valuation levels and the possibility of good surprises in earnings data, some analysts are forecasting small recovery, while others are more pessimistic.
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