Overview of Apple's second quarter results: what to expect (NASDAQ: AAPL)

Apple Inc. (NASDAQ: AAPL) Investors hope Apple can continue its momentum by posting its second-quarter financial results after market close on April 30. Here is a preview of what Wall Street expects from Apple.

Numbers

Analysts expect Apple to release EPS of $ 2.37 for the second quarter. Analysts also expect a turnover of 57.4 billion dollars, down 6.1% from the previous year. Apple investors will also closely monitor the sales turnover of the sales and service sector. Sales generated by iPhone sales decreased by 15% in the first quarter, but that of services increased by 19% over the previous year.

Wall Street analysts expect Apple to announce $ 2.08 EPS on $ 51.93 billion in revenue.

Analysts' catch

Several analysts weighed on Apple stocks before profits.

Chris Caso, an analyst at Raymond James, forecasts iPhone unit sales of 42 million euros, down 19.6% from the previous year. In addition to total iPhone sales, Caso said investors should pay close attention to mix trends and average selling price.

"Our current model assumes that combined PSAs could fall by 15% per year by December – the downward shift could have a negative impact on sales, margins and associated AppleCare revenue. Caso writes in a note.

CFRA analyst Angelo Zino expects Apple's second quarter gain of $ 2.38.

"While we anticipate that the iPhone application will be slowed by longer replacement cycles until the launch of a 5G device during the 2020 calendar year, we are encouraged by the recent growth of clothing technologies, especially the Apple Watch, "wrote Zino.

CFRA has a purchase rating and a target of $ 210.

Wamsi Mohan, an analyst at Bank of America, claims EPS of $ 2.33, slightly lower than consensus estimates. Mohan said gross margins would be essential for Apple.

"If Apple can record a quarter of its gross margins from 37% to 38% (in the indicative range) despite price declines and its indicative gross margins higher from 37.5% to 38.5%, we would say that the trend is to the increase to gross margins, which would be a major advantage, "wrote Mohan.

Bank of America has a purchase price and a target of $ 220.

Timothy Arcuri, an analyst at UBS, said the results and forecasts of Apple should go very well, despite the difficulties of the iPhone mix.

"We are modeling $ 56.5B / $ 2.33 rev / EPS over Street, a slightly lower guide for the iPhone, due to the reduction in ASP ($ 687 per month). report at $ 745), corroborated by the CIRP data and estimates of purchases of older UBS models, "wrote Arcuri.

UBS has an index of purchase and a goal of $ 235.

According to Daniel Ives, an analyst at Wedbush, investors can expect a rebound in Chinese figures from Apple during the quarter.

"As we discussed with investors, it is the pride of Apple's price on the iPhone XR that was the main factor in the debacle of the company in December, but with the recent price cuts, Cupertino, as we expect the street to see when the company will report Tuesday after the bell, "wrote Ives.

Wedbush has an Outperform rating and a goal of $ 225.

Volatility to come?

Last quarter, Apple's shares initially jumped 6% after a modest winning bat. Apple has a history of volatile earnings reactions.

According to Optionslam.com, Apple's seven-day implicit movement is 4% higher than earnings on the weekly options market.

Apple's stock has already risen 29% since the beginning of the year. Shares closed Friday at $ 204.30.

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