What to expect from Apple's earnings
In many ways this tends to be one of Apple's least telling quarters. The new iPhones are still several months out and the old ones have been on the market for a while. Nonetheless, here's our cheat sheet for Apple, which reports earning after the close on Tuesday.
The numbers: Apple tends to exceed estimates. Here's what Wall Street is expecting, according to Zacks Investment Research.
- Per-share earnings: $2.01, unchanged from last year (Zacks)
- Revenue: $52.6 billion (Zacks)
What I'm looking for: The main thing I am looking for is "the one sentence." By that, I mean that one line Apple sometimes gives on a new area. "TV is a hobby," was an early example of this. I want to know what Apple has to say, for example, about cars.
I wouldn't be surprised to hear Apple CEO Tim Cook say a teensy bit more about Apple's car effort. I'm not talking a roadmap or anything, but now that its permit to test self-driving cars is public, I think he might try to set some expectations.
What I don't expect: I'd be surprised to hear Apple share any expectations around the next iPhone. It's just too soon. Even if it already expects shipments of the high-end model to be limited, it's likely to wait until next quarter to say so, and usually things are in too much flux at this point anyway.
The noise: Expect the media to make a lot about Apple's cash balance. Yes, $250 billion is a lot but so was the $249 billion the day before they crossed that threshhold. I'm not even all that interested about if they are able to repatriate. I am VERY interested the day they start to use that massive stockpile.