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Apple Expected to Report Strong Earnings Today, But Unlikely to Set Record-Breaking Quarter

Apple is set to report its earnings results for the second quarter of its 2017 fiscal year at 1:30 p.m. Pacific Time today.

Apple provided the following guidance for its second quarter on January 31:

• revenue between $51.5 billion and $53.5 billion
• gross margin between 38 percent and 39 percent
• operating expenses between $6.5 billion and $6.6 billion
• other income/expense of $400 million
• tax rate of 26 percent

That guidance suggests Apple will report its second-best March quarter earnings results in the company's history:

• Q2 2013: $43.6 billion
• Q2 2014: $45.6 billion
• Q2 2015: $58 billion
• Q2 2016: $50.6 billion
• Q2 2017: $51.5+ billion

Wall Street analysts generally expect Apple to meet the higher end of its guidance, with revenue estimates averaging around $53 billion. If accurate, Apple will have grown around four to six percent compared to the year-ago quarter, marking its second consecutive quarter of growth after an uncharacteristic nine-month skid last year.

MacRumors.com compiled estimates from over a dozen financial institutions and independent firms tracking Apple and the company's stock. The figures are listed below, ranked from highest to lowest in terms of total revenue. The date column reflects when each research note was distributed to clients.


On a category-by-category basis, the highlight of Apple's earnings results will likely be its services, such as the App Store, iTunes, Apple Music, and Apple Pay. Most analysts estimate Apple's services revenue will be up to 20 percent higher, totaling up to $7.4 billion versus $5.9 billion a year ago.


iPhone remains Apple's most important product by a significant margin. Most analysts predict that Apple topped the 51.1 million iPhones it sold in the year-ago quarter, with several estimates coming in above 52 million. However, four analysts expect iPhone sales to decline compared to the year-ago quarter.

iPad unit sales are forecasted to decline to between 7 million and 9.8 million compared to the 10.2 million tablets Apple sold in the year-ago quarter, while Mac sales should remain relatively flat on a year-over-year basis.


Meanwhile, analysts believe Apple Watch sales totaled between 1.6 million and 3 million in the quarter. Apple does not disclose Apple Watch sales in its quarterly earning results, instead grouping the device under its "Other Products" category, alongside iPods, Apple TVs, Beats Electronics, and accessories.

Apple's cash and marketable securities total is projected to have surpassed $250 billion in the second quarter, up from $246.1 billion last quarter. Apple is expected to provide an update about its capital allocation, including dividends and share buybacks, as it usually does at this time of its fiscal year.

Apple CEO Tim Cook and CFO Luca Maestri will discuss the company's financial results on a conference call at 2:00 p.m. Pacific Time. MacRumors.com will transcribe the call as it unfolds for those unable to listen.

Tags: earnings, AAPL


Top Rated Comments

(View all)

28 months ago
"I can't believe they're focusing on doing earnings reports when they should make their accountants and finance people work on a new Mac Pro, Mac Mini etc."
hehehehehe
Rating: 9 Votes
28 months ago
Always love when the earnings reports come out and Apple customers cheer like they've won something. Apple remains insanely profitable while charging them a premium for increasingly stale/mediocre products and we jump up and down and clap for them.

It was a lot easier to pay an Apple tax when their products were superior to everything on the market.
Rating: 9 Votes
28 months ago
yea ok thats all good but where is my god dang new Mac Mini!!!
Rating: 5 Votes
28 months ago

"I can't believe they're focusing on doing earnings reports when they should make their accountants and finance people work on a new Mac Pro, Mac Mini etc."
hehehehehe

Only product people can make a new Mac Pro.
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yea ok thats all good but where is my god dang new Mac Mini!!!

Profit is the new product line.
Rating: 4 Votes
28 months ago

I was wondering how quick will it be for someone to mention the Mac thingy. Wasn't expected to be the first comment.

Don't worry, it'll probably be the only mention of "Mac" you'll have to see. The closest thing Apple will get to "Mac" during the conference call is the "pipeline."
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Spoiler - Apple (still) makes a ton of cash. People complain about the lack of a new Mac Pro.

You're right, I hope Apple never updates the Macs and they make even more money.
Rating: 3 Votes
28 months ago

Always love when the earnings reports come out and Apple customers cheer like they've won something. Apple remains insanely profitable while charging them a premium for increasingly stale/mediocre products and we jump up and down and clap for them.

It was a lot easier to pay an Apple tax when their products were superior to everything on the market.


This. I have no qualms paying extra IF the money translated into quality and was invested into R&D for surprising future products. But it isn't. iCloud still sucks, Maps still suck, the entire Mac line is hopelessly out of date (the new MBP being the worst Mac I've ever used), pro apps like Aperture died on the vine without a word, Apple (seemingly) quit the standalone screen business and discontinued their router just when routers had started becoming interesting again (Amazon). Next to all that, competitors are on par with Apple in design, satisfaction and reliability.

So what all our money is actually doing is padding Apple's $250b war chest so Cook can buy Chinese ride share companies and rehash 3-year old products as new. Sad. :(
Rating: 2 Votes
28 months ago

Spoiler - Apple (still) makes a ton of cash. People complain about the lack of a new Mac Pro.


Apple making billions doesn't help us. Apple making a new Mac Pro does help us and the sale of it will help Apple.
Rating: 2 Votes
28 months ago
Kind of a bittersweet quarter. Very happy as a shareholder. This is usually a quiet quarter so for Apple to beat revenue and maintain margins is exciting and comforting, especially when Apple released zero products of significance this quarter. (Yes, slicing Air off the iPad and tweaking the 6SE are marginal meant to keep those products from completely sliding off the cliff).

As a tech fan I lament much of this profit is from services. Guessing it's mostly from ApplePay as more and more retailers worldwide start accepting it and Apple Music, the other area in services where there is fast growth potential. I have a feeling this year's WWDC more than any other in the TC era is going to give us a huge hint at where he see's Apple trending in the next few years and how much more we can expect Apple to latch onto subscription services.
Rating: 2 Votes
28 months ago
Spoiler - Apple (still) makes a ton of cash. People complain about the lack of a new Mac Pro.
Rating: 2 Votes
28 months ago
With tax repatriation very much on the table I wonder if Apple will hold back on updating its capital return program. I am expecting Congress to pass some tax reform of some sort and it will include repatriation. Persononally I'm hoping for a $100 billion one-time dividend associated with that repatriation. That would be an amazing moment in corporate history. And it would stimulate the U.S. economy (not as much as Republicans may hope, but it would do something).
[doublepost=1493727500][/doublepost]

Always love when the earnings reports come out and Apple customers cheer like they've won something. Apple remains insanely profitable while charging them a premium for increasingly stale/mediocre products and we jump up and down and clap for them.

It was a lot easier to pay an Apple tax when their products were superior to everything on the market.


The OS is still vastly superior to Windows and somewhat superior to Android. The premium is well worth it in my opinion.

Anyway, on these threads many of us are shareholders. And because of the stock growth over the years a lot of us have a sizable chunk of our net wealth in Apple shares.
Rating: 1 Votes

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