It would be a big day for Apple Inc.’s (NASDAQ:AAPL) investors and the Wall Street as the
world’s largest company with market value over $564 billion is all set to
report its third quarter earnings after market-hours.
Unlike in the past two quarters, this time investors are cautious
on the company’s earnings with average analysts are estimating the company to
report $10.36 a share in earnings and revenue of $37.18 billion. In a year ago
quarter, the company had $7.79 a share on revenue of $28.57 billion. However, whisper earnings are estimating
the company to report $11.89 a share.
Can APPL Jump To
$1000 By This Year, Get Trend
Analysis
Several key metrics are going to be closely watched with
most significant is the company’s sales of iPhone, which drives the majority of
revenues. Although, strong growth is expected, but analysts expect that Apple
may miss street’s estimates considering tech lovers are postponing their buys ahead
of much anticipated launch of new version of iPhone 5. Although, exact date or
month is uncertain, but analysts speculate that it could be between September
to October later this year.
Moreover, as we all know Apple issues conservative forecast and
investors are once again closely watch for earnings guidance as several tech
companies in the past week had provided captious earnings forecast.
How Should Investors
Trade Before Earnings, Get Here
An analyst at Pacific Crest Securities said that “While we
see the potential for modest upside to our fiscal third quarter (June) iPhone
unit estimate of 25.4 million, we do not expect fiscal third quarter iPhone
units to top 27 million, which we believe is the buy-side consensus estimate.”
Shares of the company had solid seen solid recovery form
session’s low on Monday and ended less that $1 lower at above $600 mark. In the
pre-market session, the stock is up 0.55% to $607.07. The stock has already
underperformed year to date with a gain of about 49% and trading just 6% away
from its all time high of $644 in early April 2012.
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