Article written by Tony Sycamore, market analyst at IG Australia

When will Apple launch its newest earnings report?

Apple is scheduled to announce third quarter (Q3) earnings on Thursday, August 1, 2024.

Key monetary indicators

Final quarter (second quarter), Apple reported income of US$90.75 billion, larger than the anticipated US$90.01; earnings per share have been US$1.53, larger than the anticipated US$1.50. The corporate introduced that its board of administrators has approved $110 billion in inventory repurchases, a 22% improve from $90 billion the earlier 12 months. Going a step additional, the corporate approved a 25-cent dividend, sending the inventory hovering 7% in after-hours buying and selling.

The corporate reported the next key figures:

• iPhone income Down almost 10% to $45.96 billion, in contrast with expectations of $46 billion
• Mac income Progress of 4% to $7.5 billion, in contrast with expectations of $6.86 billion
• iPad income $5.6 billion, in contrast with expectations of $5.91 billion. Apple has not launched a brand new iPad since 2022.
• Serve revenue Progress of 14.2% to $23.9 billion in contrast with expectations of $23.37 billion. this Serve Segments embody subscriptions similar to iCloud Storage, App Retailer and Apple Music.
• this wearable machine The opposite merchandise section, which incorporates Air Pods and Apple Watch, fell greater than 10% to $7.9 billion

Highlighting second quarter internet gross sales by class

SourceApple.com

Market efficiency in Higher China

Apple’s gross sales in Higher China, its third largest market, fell 8% to $16.37 billion. Nevertheless, the determine exceeded analysts’ expectations of $15.25 billion, easing considerations that the iPhone would lose market share to native merchandise similar to Huawei.

Web Gross sales Chart by Reportable Segments

Supply Apple.com

inventory efficiency

Throughout its second-quarter earnings name, Apple didn’t present formal steerage for the third quarter. Nevertheless, Chief Govt Tim Cook dinner stated on a post-earnings convention name that “total gross sales within the June quarter will stay up within the low single digits.”

Key Monetary Information – Abstract

Here is what Wall Avenue is anticipating for the upcoming outcomes.

• Earnings per share: $1.34 vs $1.53 per share final quarter
• revenue: $84.3 billion vs $90.75 billion

Apple gross sales income

supply commerce economics

Key Metrics and Insights to Watch

iPhone efficiency: Apple faces challenges in China and affords reductions to compete with rivals similar to Huawei. Gross sales are anticipated to fall once more this quarter to $37.7 billion from $45.96 billion within the second quarter.

Mac gross sales: The Mac enterprise is anticipated to carry out effectively, with shipments rising 20.8% 12 months over 12 months, outpacing the broader PC market.

Serve develop: Apple’s digital providers enterprise is anticipated to proceed its robust efficiency, pushed by elevated App Retailer gross sales and elevated utilization of subscription providers.

Gross revenue margin: The corporate’s gross margin is anticipated to rise on account of a good gross sales mixture of premium merchandise and better service gross sales.

The event of synthetic intelligence: Updates to Apple’s new generative synthetic intelligence software program, Apple Intelligence, are anticipated to drive a file machine improve cycle, boosting iPhone and iPad gross sales and costs.

Chinese language market: Given current headwinds, Apple’s efficiency in China, one in all its largest markets, shall be carefully watched.

Fourth quarter steerage: Apple has not offered official steerage since 2020. Nevertheless, any perception into subsequent quarter’s forecast is necessary, particularly round Apple Intelligence and the anticipated improve cycle for Apple Intelligence.

Apple technical evaluation

Apple shares rose 60% from a low of $124.17 in early January 2023 to a excessive of $199.62 in December 2023, earlier than consolidating features between $200 and $165.00 over the following 5 months.

Apple’s second-quarter earnings report launched in early Might and the following WWDC held on June 10 have been the catalysts for it to interrupt via $200 to a mid-July excessive of $237.23. Since then, Apple shares have fallen 8.50%. If the pullback deepens, we anticipate Apple shares to be effectively supported by consumers between $210 and $200, trying to push towards $250/$270 sooner or later.

Realizing that if Apple shares proceed to fall beneath $200/$190, the bullish outlook shall be negated and a warning {that a} bigger pullback is on the way in which,

Apple Day by day Chart

generalize

Apple is scheduled to report third quarter (Q3) earnings on Thursday, August 1, 2024. .

Supply transaction view. The above knowledge is as of July 25, 2024. This report doesn’t comprise and shouldn’t be deemed to comprise any monetary product recommendation or monetary product suggestions.