Apple to Announce Earnings Today Following First Revenue Warning in 16 Years, End of Unit Sales Reporting

aapl logo 2018Apple is set to report its earnings results for the first quarter of its 2019 fiscal year at 1:30 p.m. Pacific Time today.

The quarter began September 30, 2018 and ran through December 29, 2018, according to Apple's fiscal year accounting calendar.

Apple issued a rare earnings warning for the quarter on January 2, its first in over 16 years. The revised guidance is as follows:

  • revenue of approximately $84 billion

  • gross margin of approximately 38 percent

  • op. ex. of approximately $8.7 billion

  • other income/expense of approximately $550 million

  • tax rate of approximately 16.5 percent before discrete items

Apple's initial guidance for the quarter on November 1:

  • revenue between $89 billion and $93 billion

  • gross margin between 38 percent and 38.5 percent

  • op. ex. between $8.7 billion and $8.8 billion

  • other income/expense of $300 million

  • tax rate of approximately 16.5 percent before discrete items

Apple's guidance suggests it will report its second-best first quarter results ever, based on revenue, behind its 2018 record of $88.3 billion:

  • 2015: $74.6 billion

  • 2016: $75.9 billion

  • 2017: $78.4 billion

  • 2018: $88.3 billion

  • 2019: $84 billion

What to Look For

  • Apple's revised guidance suggests it will report its first holiday quarter sales decline since 2001, although it would still be the company's second-best quarter ever in terms of revenue.

  • This is Apple's first earnings report in which it will not disclose iPhone, iPad, or Mac unit sales, a change it announced back on November 1. Apple's financial chief Luca Maestri said Apple may provide qualitative commentary about sales if necessary, so it will be interesting to see how the conference call and question-and-answer session play out.

  • In a letter to shareholders on January 2, Apple CEO Tim Cook disclosed that Apple's revenue will be lower than its original guidance for the quarter, coming in at approximately $84 billion. Apple initially guided for revenue of $89 billion to $93 billion in the quarter on November 1. Look for any potential commentary surrounding the shortfall.

  • Apple's guidance for its second quarter of fiscal 2019, which began December 30 and so far only encompasses the launch of new Smart Battery Cases for the iPhone XS, ‌iPhone‌ XS Max, and iPhone XR. It could eventually include new iPads, a new iPod touch, new AirPods, the AirPower, more. Analysts expect revenue of around $58.9 billion in the second quarter, compared to $61.1 billion in the year-ago quarter.

  • Continued growth of Apple's Services category, including the App Store, Apple Music, iCloud, iTunes, Apple Pay, and AppleCare. Last quarter, Apple's services brought in a record $9.9 billion revenue. Apple has said it is still on target to double its fiscal 2016 services revenue by fiscal 2020. Analysts expect services revenue of around $11 billion in the quarter.

  • Continued growth of Apple's Wearable, Home, and Accessories category, previously named Other Products, including the Apple Watch, Apple TV, HomePod, ‌AirPods‌, Beats, ‌iPod touch‌, and accessories—particularly as Apple diversifies revenue beyond the ‌iPhone‌.

Apple's CEO ‌Tim Cook‌ and CFO Luca Maestri will discuss the company's earnings results on a conference call at 2:00 p.m. Pacific Time today. MacRumors will loosely transcribe the one-hour call as it occurs live.

Tag: AAPL

Top Rated Comments

Baymowe335 Avatar
33 months ago
BEFORE everyone freaks out, we are getting more detail on services margin and they will post record EPS.

Doom and gloomers need to calm down. Too summarize:

China was over 100% the revenue shortfall and revenue records were still set in the US, Canada, Mexico, Spain, Italy, Germany, Korea, Vietnam, and the Netherlands.

No, prices aren't too high in all markets and for ones like China, they have priced iPhones more aggressively.

Other companies have reported significant weakness in China too, including:

* Apple
* Nvidia (revised rev down 20%)
* Caterpillar
* Samsung
* Intel
* FedEx
* Goodyear
* Tiffany

Apple is going to make $20B in profit in 90 days in Q1 2019.

The stock trades at 10X earnings, so Mr. Market will value earnings over time.

Stocks go up and down.

Have a nice day.
Score: 23 Votes (Like | Disagree)
ThomasJL Avatar
33 months ago
One (out of many) reasons why I miss Steve Jobs is because he cared more about customers than shareholders. Tim Cook cares more about shareholders than customers. That’s why Cook raised prices by hundreds of dollars on many of Apple’s products. That’s also why Cook let many of Apple’s less profitable products (such as the Mac Pro, Mac Mini, iPod Touch, etc.) go without updates for many years, while also killing off less profitable product lines like the Cinema Display line and the Airport line. For Cook, it’s profits over people.
Score: 19 Votes (Like | Disagree)
ryanwarsaw Avatar
33 months ago
...
You tend to state your opinions as if they are facts. Unless you work at Apple in an executive position you offer nothing more than mere speculation the same as the rest of us. You talk to people like they are little children which also doesn't help.
Score: 11 Votes (Like | Disagree)
keysofanxiety Avatar
33 months ago
When will all of you 4 inchers realise you are in the minority.
I thought 4 inches was the average? :(
Score: 11 Votes (Like | Disagree)
neoelectronaut Avatar
33 months ago
Make a 4" phone you cowards.
Score: 8 Votes (Like | Disagree)
HJM.NL Avatar
33 months ago
It will start with Cook saying he’s ‘thrilled’ and ending with he has great confidence in Apple and it’s products in the pipeline. Followed with vague answers from questions, blaming the bad economics in China (which predict to grow at a rate of an astonishing 6% throughout 2020). Defending the high prices in the UK for the brexit (which still hasn’t occurred).

Amazing :rolleyes:
Score: 6 Votes (Like | Disagree)

Top Stories

Flat 2021 MacBook Pro Mockup Feature

Unreleased Apple Macs and Apple Watches Listed in Eurasian Database Ahead of Fall Product Launches

Monday August 2, 2021 9:34 am PDT by
Apple is preparing for a slew of fall product launches according to new filings that showed up today in the Eurasian Economic Commission database. There are listings for new Mac and Apple Watch models, all of which have previously unknown model identifiers that indicate that they're upcoming devices. There are six new Apple Watch identifiers, including A2473, A2474, A2475, A2476, A2477, and...
ifixit iphone12 mini

Apple to Make Space for Larger Batteries in iPhones, iPads, and MacBooks By Adopting Slimmer Peripheral Chips

Monday August 2, 2021 2:12 am PDT by
For future iPhones, iPads, and MacBooks, Apple plans to use smaller internal components in an effort to increase the size of the device's battery, according to DigiTimes. Image Credit: iFixit Specifically, Apple plans to "significantly increase the adoption" of IPDs or integrated passive devices for the peripheral chips in its products. These news chips will be slimmer in size and allow for...
Apple watch series 5 new case material made of titanium 091019

Titanium Apple Watch Series 6 Models Currently Widely Unavailable

Sunday August 1, 2021 6:21 am PDT by
Models of the Apple Watch Series 6 with titanium cases part of the "Apple Watch Edition" collection is currently widely unavailable for pick-up in several of Apple's retail stores in the United States and is unavailable entirely for delivery in major markets. Noted by Bloomberg's Mark Gurman in the latest edition of his "Power On" newsletter, titanium models of the Apple Watch Series 6,...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
REC ASA CODE2016 20160601 205816 2745

Elon Musk Reportedly Demanded to Become Apple CEO as Part of Potential Tesla Acquisition [Update: Musk Denies]

Friday July 30, 2021 9:04 am PDT by
Tesla CEO Elon Musk reportedly once demanded that he be made Apple CEO in a brief discussion of a potential acquisition with Apple's current CEO, Tim Cook. The claim comes in a new book titled "Power Play: Tesla, Elon Musk and the Bet of the Century," as reviewed by The Los Angeles Times. According to the book, during a 2016 phone call between Musk and Cook that touched on the possibility of ...
iPhone 13 Wi Fi 6E feature update

Wi-Fi 6E Explained: What It Could Mean for iPhone 13 and Beyond

Monday August 2, 2021 8:00 am PDT by
The iPhone 13 is widely expected to come with Wi-Fi 6E capabilities, and while it may seem rather nuanced to the average consumer, with only improved speeds and being "up to date" in the realm of Wi-Fi technology, it's actually a fairly significant improvement, laying the groundwork for much of what we know the future holds. To truly understand Wi-Fi 6E, MacRumors sat down for an exclusive...
magic keyboard touch id

Apple Makes Magic Keyboard With Touch ID Available for Separate Purchase

Tuesday August 3, 2021 5:22 am PDT by
Apple has made the Magic Keyboard with Touch ID, which previously was only available with the purchase of the new 24-inch iMac, available for purchase individually for $149. Apple also retails the Magic Keyboard with Touch ID and a numeric keypad for $179. A standard Magic Keyboard without Touch ID or a numeric keypad is available for $99, and a new Magic Trackpad for $129. One major...
themorningshowcarrell

Apple Decided Not to Buy Reese Witherspoon's 'Hello Sunshine' Media Company

Monday August 2, 2021 2:02 pm PDT by
Reese Witherspoon's media company "Hello Sunshine" recently courted various buyers, and while Apple was one of parties interested in buying Hello Sunshine, the Cupertino company did not end up going through with the purchase. Hello Sunshine was valued at around $900 million thanks to its involvement in popular series like The Morning Show," "Big Little Lies," and "Little Fires Everywhere,"...
COVID19 Digital Wallet Apple Wallet

Australian Government Now Offering COVID-19 Digital Vaccination Certificates for Apple Wallet

Monday August 2, 2021 12:04 am PDT by
The Australian government has introduced support for adding COVID-19 vaccination digital certificates to Apple Wallet via the Express Plus Medicare app on iOS. Image credit: Tap Down Under As spotted by Tap Down Under, users who have received two doses of either the AstraZeneca or Pfizer vaccine now have access to the digital certificate through their Medicare online account or via the Medica...
mac pro new graphics

Apple Introduces New High-End Graphics Options for Mac Pro

Tuesday August 3, 2021 7:34 am PDT by
Apple today began offering new high-end graphics upgrade options for both the tower and rack versions of the Mac Pro desktop computer. This comes on the same day that Apple started selling the Magic Keyboard with Touch ID on a standalone basis. As noted by CNN Underscored's Jake Krol, the Mac Pro can now be configured with new AMD Radeon Pro W6800X, W6800X Duo, or W6900X graphics when...