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

Apple BondsApple 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.

AAPL Q2 2017 earnings preview 1
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.

AAPL Q2 2017 earnings preview 2
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.

AAPL Q2 2017 earnings preview 3
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

Nimrad Avatar
52 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
Score: 9 Votes (Like | Disagree)
mantan Avatar
52 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.
Score: 9 Votes (Like | Disagree)
The Igloo Avatar
52 months ago
yea ok thats all good but where is my god dang new Mac Mini!!!
Score: 5 Votes (Like | Disagree)
Michaelgtrusa Avatar
52 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.
[doublepost=1493724801][/doublepost]
yea ok thats all good but where is my god dang new Mac Mini!!!
Profit is the new product line.
Score: 4 Votes (Like | Disagree)
tech4all Avatar
52 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."
[doublepost=1493737647][/doublepost]
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.
Score: 3 Votes (Like | Disagree)
selfsilent Avatar
52 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.
Score: 2 Votes (Like | Disagree)

Top Stories

samsung experience 1

Samsung's 'iTest' Lets You Try a Galaxy Device on Your iPhone

Thursday April 8, 2021 12:42 pm PDT by
Samsung has launched "iTest," an interactive website experience that's designed to allow iPhone users to test out Android on a Galaxy device, or "sample the other side," as Samsung puts it. Subscribe to the MacRumors YouTube channel for more videos. The iTest website is being advertised in New Zealand, according to a MacRumors reader who came across the feature. Visiting the iTest website on...
sonny 2021 ipad mini pro dummies

Leaked Dummy Units Show iPad Mini 6 With Thick Bezels and Home Button, New iPad Pro Models

Thursday April 8, 2021 2:11 am PDT by
Rumors suggest Apple will release refreshed versions of the iPad mini and iPad Pro models in the first half of this year, potentially as soon as this month, and a new leak today has provided us with a possible preview of what to expect in terms of the devices' overall design and camera prospects. Tech leaker and Apple blogger Sonny Dickson this morning shared images on Twitter showing dummy ...
apple music for artists new icon

Apple's Revamped Apple Music for Artists Icon Leads to Speculation About iOS 15 Design Plans

Tuesday April 6, 2021 1:03 pm PDT by
Apple yesterday updated its Apple Music for Artists app with some minor bug fixes and improvements, but also one other notable change -- a new icon. New icon on the right The Apple Music for Artists app now features a simpler, streamlined icon with a pinkish red music logo rather than the multicolored logo that was used before. The icon also has an embossed look that makes it stand out from...
apple find my network

Apple Announces Find My Network With Support for Third-Party Devices

Wednesday April 7, 2021 10:06 am PDT by
Apple today announced the launch of its Find My network accessory program, which is designed to allow third-party Bluetooth devices to be tracked in the Find My app right alongside your Apple devices. According to Apple, the first accessory companies to take advantage of the new Find My integration include Belkin, Chipolo, and VanMoof, with devices set to be available beginning next week. ...
new m1 chip

M1 Mac RAM and SSD Upgrades Found to Be Possible After Purchase

Tuesday April 6, 2021 5:34 am PDT by
Technicians in China have reportedly succeeded in upgrading the memory and storage of the M1 chip, suggesting that Apple's integrated custom silicon for the Mac may be more flexible than previously thought. Reports of maintenance technicians being able to expand the memory and storage of M1 Macs began circulating on Chinese social media over the weekend, but now international reports have...
Intel MBP Is Thin and Lighjt

Intel Ad for 'World's Best Processor' Features a MacBook Pro

Wednesday April 7, 2021 9:51 am PDT by
Intel has been on a relentless marketing drive against Mac computers in recent weeks, positioning them as inferior to Windows laptops powered by Intel processors. In a slight slip-up, however, Intel has accidentally used a MacBook instead of a Windows laptop in one of its newest ads to promote one of its new 11th-generation chips as "the world's best processor." The ad appeared on Reddit and ...
tmobile 5g modem

T-Mobile Launches Unlimited 5G Home Internet for $60/Month

Wednesday April 7, 2021 2:18 pm PDT by
T-Mobile today hosted an Un-carrier event where the company announced the launch of a a new 5G home internet plan, which is priced at $60 per month and offers unlimited data. The service is available to more than 30 million Americans across much of the United States, including 10 million households in rural areas not typically able to access reliable broadband. Connectivity will be either 4G ...
iMessage Android featured

Apple's Rationale for Not Bringing iMessage to Android Revealed in Legal Documents

Friday April 9, 2021 2:22 am PDT by
It's no secret that Apple sees iMessage as a big enough selling point to keep the service exclusive to Apple devices, however new court filings submitted by Epic Games in its ongoing lawsuit with the company reveal just how Apple executives have rationalized their decision not to develop a version of iMessage for Android. Apple clearly recognizes the power that iMessage has to keep users...
14

Apple Seeds Seventh Betas of iOS 14.5 and iPadOS 14.5 to Developers [Update: Public Beta Available]

Wednesday April 7, 2021 10:04 am PDT by
Apple today seeded the seventh betas of upcoming iOS 14.5 and iPadOS 14.5 updates to developers for testing purposes, with the new beta updates coming one week after Apple released the sixth iOS and iPadOS 14.5 betas. iOS and iPadOS 14.5 can be downloaded through the Apple Developer Center or over the air after the proper profile has been installed on an iPhone or iPad. iOS 14.5 is the...
ipad pro and macbook pro

iPad and MacBook Production Reportedly Delayed Due to Global Chip Shortage

Thursday April 8, 2021 2:31 am PDT by
Apple is facing a global shortage of certain components for some of its MacBook and iPad models, causing the Cupertino tech giant and its suppliers to postpone production of the products, according to a new report from Nikkei Asia. According to the report, MacBook production is being hindered due to the shortage of chips mounted onto the circuit board before final assembly, which is a key...