What to Expect From Apple's Second Quarter Earnings Results Today

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

The quarter began December 30, 2018 and ran through March 30, 2019, according to Apple's fiscal year accounting calendar.

Apple's guidance for the quarter from January 29:

  • revenue between $55 billion and $59 billion

  • gross margin between 37 percent and 38 percent

  • op. ex. between $8.5 billion and $8.6 billion

  • other income/expense of $300 million

  • tax rate of approximately 17 percent before discrete items

Apple's guidance suggests that it will report at least its third-best second quarter ever based on revenue:

  • 2015: $58 billion

  • 2016: $50.6 billion

  • 2017: $52.9 billion

  • 2018: $61.1 billion

  • 2019: $55+ billion

Wall Street analysts forecast that Apple will report $57.4 billion revenue, above the midpoint of its guidance, and earnings per share of $2.36, according to 28 estimates averaged by Yahoo Finance.

What to Look For

  • Investors will be looking for iPhone revenue and Greater China revenue to rebound after Apple issued its first revenue warning in 16 years last quarter due to fewer-than-anticipated iPhone sales, primarily in the Greater China region. Wall Street expects iPhone revenue to be around $30.5 billion, according to six estimates compiled by Bloomberg News.

  • Any potential commentary surrounding Apple's settlement and chipset agreement with Qualcomm. Apple is expected to release its first 5G-enabled iPhones in 2020 with Qualcomm and Samsung modems.

  • Apple's growing services category remains key. Apple's services revenue reached an all-time high of $10.9 billion last quarter, up 19 percent year-over-year. This category includes the App Store, Apple Music, iCloud, iTunes, Apple Pay, and AppleCare. Later this year it will expand to include the Apple Card, Apple Arcade, Apple TV+, and Apple News+.

  • Apple's stock price has increased by approximately 30 percent since its last earnings report on January 29 and positive results could further support the rally. Many analysts are bullish on Apple, as they believe that Chinese consumer demand rebounded during the quarter.

  • Apple plans to provide an update on its capital return program on its earnings call today. Many analysts expect a significant increase of between $50 billion and $100 billion and an increased dividend.

  • Apple's guidance for the third quarter of its fiscal year, which is typically its slowest in terms of revenue.

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

(View all)
Avatar
12 months ago

what is this? CNBC?

yes
Score: 11 Votes (Like | Disagree)
Avatar
12 months ago
In time electronics should get cheaper, not more expensive, my take is that iPhones got too expensive for China, actually for the whole world, but in the rich west it's not as obvious, higher wages/contracts/loans don't actually show how ridiculous pricey new iPhones are, just half a decade ago they were more or less half the price they are now, doesn't stop there, macs also got substantially more expensive in the last 5 years.

Greed/Wall street.....
Score: 10 Votes (Like | Disagree)
Avatar
12 months ago
I would like to see them take a real financial bashing to drain some of the arrogance from a company that has lost its way in recent years. Seems the only thing they're trying to sell these days is Privacy (well, unless you're in China - where Tim's empty platitudes are seen for what they really are.).

The products? A Netflix clone and a credit card.

What imagination.
Score: 8 Votes (Like | Disagree)
Avatar
12 months ago
More of the same from Timmy & The Boys

Little to no innovation in the Mac lineup. Doubling down on a bad keyboard design. More SJW-ing & platitudes from Tim and more greed from an already greedy company.
Score: 5 Votes (Like | Disagree)
Avatar
12 months ago
We will see how China did and if they more aggressive measures taken improved the outlook.

I am interested in:

1) The buyback update.
2) Top line Revenue
3) China Revenue
4) EPS

In that order.
[doublepost=1556650719][/doublepost]

Their Long-Term Debt as well !

Last Qtr they reported $93B USD !

Yes, because they correctly borrowed money for buybacks when cash was stuck overseas. You'll sound foolish if you start trumpeting Apple having a balance sheet, liquidity, or cash problem. They have $130B+ in net cash. Case closed.
Score: 2 Votes (Like | Disagree)
Avatar
12 months ago

Buyback and dividend increase. My top two items. Make it good and retirement may be looming large.

I made a risky move and bought a bit more AAPL earlier when it dipped below $200. For better or worse. :)

How could anybody not buy a small amount to spice things up?
Score: 2 Votes (Like | Disagree)

Top Stories

Leaker Claims New 13-inch MacBook Pro Coming as Soon as Next Month

Monday April 6, 2020 2:56 am PDT by Tim Hardwick
Apple will announce a new 13-inch MacBook Pro in May with the codename J223, according to a rumor shared by YouTuber and leaker Jon Prosser. Note: it’s a refresh to the current 13” So the bigger 14” display upgrade is a big possibility— Jon Prosser (@jon_prosser) April 4, 2020 Analyst Ming-Chi Kuo has said Apple plans to release new MacBook Pro and MacBook Air models with scissor keyboards ...

iOS 14 Could Offer Home Screen Widgets, Wallpaper Customizations

Saturday April 4, 2020 3:30 pm PDT by Frank McShan
iOS 14 could offer home screen widgets and wallpaper customizations for the first time, according to 9to5Mac and Twitter user DongleBookPro. Apple is reportedly working to implement widgets that can be moved freely around like icons on the iPhone and iPad homescreen for the very first time. The feature is reportedly codenamed "Avocado" and no other details are available. It was also...

'Leaked' Images Allegedly Show iPhone 12 With Smaller Notch, Rear Camera Redesign, and Home Screen Widgets

Tuesday April 7, 2020 4:28 am PDT by Tim Hardwick
Two images shared on social media this morning are currently stoking speculation about possible hardware redesigns coming to the iPhone 12 and the potential introduction of Home screen widgets in iOS 14. Shared by Twitter user Fudge (choco_bit), the images depict a front and rear graphical representation of a smartphone with interface elements on the screen, suggesting it came out of a...

More References to Apple's Upcoming Low-Cost iPhone Appear Online

Monday April 6, 2020 4:38 am PDT by Tim Hardwick
Further references to Apple's upcoming low-cost iPhone have appeared online, one on a Chinese e-commerce website and another on Verizon's smartphone trade-in page. Spotted by tech blog MySmartPrice, Chinese retailer JD.com has published a placeholder for Apple's so-called "iPhone 9" that includes a teaser image of a veiled smartphone, but other than that it lacks any particularly revealing...

The New York Times, IFTTT, Medium, and Other Apps Adopt Sign in With Apple Ahead of June 30 Deadline

Sunday April 5, 2020 7:08 pm PDT by Frank McShan
Apps with sign-in functionality, including The New York Times, IFTTT, Medium, and more, have continued to adopt Apple's secure Sign in with Apple feature ahead of a deadline of June 30. The deadline for these apps to support the feature was recently extended from April 30. Sign in with Apple, first introduced in iOS 13, allows users to create accounts for apps and websites using an Apple ID. ...

Some Users Experiencing System Crashes on macOS 10.15.4, Especially During Large File Transfers

Monday April 6, 2020 8:17 am PDT by Joe Rossignol
A sizeable number of Mac users are experiencing occasional system crashes after updating to macOS Catalina version 10.15.4, released a few weeks ago. The crashing issue appears to be most prominent when users attempt to make large file transfers. In a forum post, SoftRAID described the issue as a bug and said that it is working with Apple engineers on a fix for macOS 10.15.5, or a...

Apple Releases iOS and iPadOS 13.4.1 With Fix for FaceTime Bug

Tuesday April 7, 2020 10:06 am PDT by Juli Clover
Apple today released iOS and iPadOS 13.4.1, minor updates that come two weeks after the release of iOS and iPadOS 13.4, major updates that introduced iCloud Folder Sharing, a new Mail toolbar, trackpad support for the iPad, and more. The iOS and ‌iPadOS‌ 13.4.1 updates are available on all eligible devices over-the-air in the Settings app. To access the updates, go to Settings > General...

Top Stories: Apple Leaks iPhone SE and AirTags, Apple Buys Dark Sky, and More

Saturday April 4, 2020 6:00 am PDT by MacRumors Staff
With the calendar rolling over to April this week, we yet again saw several leaks and rumors, most notably including Apple itself leaking some references to a pair of long-rumored products: a new budget iPhone SE and AirTags item trackers. Subscribe to the MacRumors YouTube channel for more videos. Apple also acquired popular weather app Dark Sky, while Amazon's Prime Video app now allows...

Apple Reportedly Targeting WWDC for Over-Ear Headphones Launch, New 'AirPods X' Later in the Year

Tuesday April 7, 2020 7:00 am PDT by Eric Slivka
Rumors of Apple-branded over-ear headphones have been circulating for quite some time, while more recent rumors have mentioned an "AirPods Pro Lite" that could also be in the works, and Twitter leaker Jon Prosser's recent foray into Apple rumors provides a bit more detail on what we might able to expect for these products. Current Beats Studio3 Wireless and BeatsX On the over-ear side,...

Apple Donating Over 20 Million Masks to Healthcare Professionals, Producing Face Shields With Suppliers

Sunday April 5, 2020 2:51 pm PDT by Joe Rossignol
Apple CEO Tim Cook today shared a video message with an update on the company's response to the ongoing pandemic. Cook said Apple has now sourced over 20 million masks that it is in the process of donating to healthcare professionals around the world. Apple is working with governments to ensure that the masks are donated to the places of greatest need. Cook added that Apple's design,...