What to expect
Apple earning are after the close and with the tech market still uncertain as a result of Netflix, Facebook and Twitter misses (and stock declines) and Amazon and Alphabet beats, Apple has the potential to tip the scales.
What are they expecting:
- Earnings: $2.18 a share as per Thomson Reuters. That compares to $1.67 a year ago. They company has not given earnings guidance, but they did expect gross margin of 38% to 38.% in the quarter
- Revenue: $52.34b vs $45.4B last year. Apple guided revenues in the $51.5B to $53.5B
- iPhone sales are expected to show a modest increase of 2% with the iPhone X making up 25% of total sales.
- The average selling price is expected to lift the avg selling price to $694, up 14.5%
- Guidance for revenues is expected to rise to $59.5B driven by new iPhones in late September
- Service revenue is expected to rise to $9.2B in June, up 25%. Services are becoming more important for Apples growth prospects.
- How much stock did they buy back? Goldman estimates they bought back $25B in the quarter. The more stock you buy back, the higher the earnings/share over time. Apple remains flush with cash.
Other earnings after the close include:
- Baidu
- Pandora
- Akamai
Tomorrow Tesla will report earnings. The options are pricing in a 9% move higher or lower which is quite chunky relatively speaking.
Other earnings tomorrow before the bell include:
- AMC
- Sprint
- Ferrari
- Humana
- ADP
After the close:
- Tesla
- Square
- USS
- Wynn Resorts
- Fitbit
- Marathon Oil
- T-Mobile
