- Apple will release its third fiscal quarter results later today, followed by a call with analysts.
- Apple declined to offer firm numbers in its forward-looking guidance, but CEO Luca Maestri did offer some details.
- Apple’s revenue for the quarter is expected to trend similarly year-on-year to Q2.
According to Apple’s CEO Luca Maestri, revenue for the quarter is expected to trend similarly year-on-year to Q2, so long as the macroeconomic outlook doesn’t worsen. Foreign exchange is predicted to remain a headwind at 400 basis points, though Services should continue to see similar growth to the March quarter. The gross margin for the third quarter should rest at 44% to 44.5% with operating costs ranging from $13.6 billion to $13.8 billion.
Using figures sourced from analysts, Apple’s revenue is expected to be $90.29 billion with earnings per share of about $1.36. Wedbush said Apple could “flex the muscles” during the results, citing high demand for the iPhone 14 Pro in China, while Morgan Stanley believes Apple will have an as-expected June quarter and Services could reach $21.8 billion over App Store spending. Goldman Sachs proposes the launch of the iPhone 15 is “promising” as the “relatively weaker performance in iPhone 14 to-date suggests that a larger share of the installed base may want to upgrade.”
Deutsche Bank raised its price target for Apple from $180 to $210 and Piper Sandler offered a middling forecast for Apple’s results. Finally, TD Cowen’s note to investors followed the group by saying Apple’s revenues for the quarter won’t be mind-blowing and will be down 2% year-on-year.
