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.
Popular Stories
As previously rumored, the next-generation iPhone 15 Pro and iPhone 15 Pro Max will feature a unified volume button and a mute button, according to leaked CAD images shared in a video on the Chinese version of TikTok and posted to Twitter by ShrimpApplePro.
Instead of separate buttons for volume up and volume down, the iPhone 15 Pro models are expected to have a single elongated button for...
Apple says iOS 16.4 is coming in the spring, which began this week. In his Sunday newsletter, Bloomberg's Mark Gurman said the update should be released "in the next three weeks or so," meaning a public release is likely in late March or early April.
iOS 16.4 remains in beta testing and introduces a handful of new features and changes for the iPhone. Below, we have recapped five new features ...
The iOS 16.4 update that is set to be released to the public in the near future includes voice isolation for cellular calls, according to notes that Apple shared today.
Apple says that Voice Isolation will prioritize your voice and block out the ambient noise around you, making for clearer phone calls where you can better hear the person you're chatting with and vice versa.
Voice...
A first-generation iPhone still sealed inside its box sold for $54,904 at auction, which is more than $54,000 over the original $599 price tag of the device when it was released in 2007.
The original iPhone was put up for sale by RR Auction on behalf of a former Apple employee who purchased it back when it first came out. Back in February, an original, sealed iPhone sold for over $63,000,...
The iOS 16.4 release candidate version that was provided to developers today appears to hint at a new set of AirPods that could be coming in the near future. According to @aaronp613, the beta features references to AirPods that have a model number of A3048 and an AirPods case with a model number of A2968.
There have been no rumors that new AirPods are on the horizon, and it is early for...
Apple today seeded the release candidate versions of upcoming iOS 16.4 and iPadOS 16.4 updates to developers for testing purposes, with the software coming a week after the launch of the fourth betas. The RCs mark the final version of the software that will be provided to the public in the near future. Registered developers are able to download the iOS 16.4 and iPadOS 16.4 updates...
Google today began allowing users to sign up to use Bard, its AI-powered chatbot that rivals Microsoft's Bing chatbot. First announced back in February, Bard is an experimental conversational AI service for Google Search.
Those interested in Bard can join Google's waitlist to get access, and some users have reported getting invitation emails just hours after signing up. There are a long list ...
Samsung today kicked off a special "Discover Samsung" event, which will be a week-long savings event focusing on Samsung monitors, smartphones, TVs, appliances, and more. While some deals will stick around the entire week (through March 26), others will refresh every day.
Note: MacRumors is an affiliate partner with Samsung. When you click a link and make a purchase, we may receive a small...
Top Rated Comments
Greed/Wall street.....
The products? A Netflix clone and a credit card.
What imagination.
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.
I am interested in:
1) The buyback update.
2) Top line Revenue
3) China Revenue
4) EPS
In that order.
[doublepost=1556650719][/doublepost] 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.