Apple Inc. (NASDAQ:AAPL) Falls To Session Low, All Eyes on Earnings
Apple Inc. (NASDAQ:AAPL) shares slid to session’s low as investors continued to book profit ahead of the earnings later today after the closing bell. The stock was recently down 15.45 (-2.70%) to $556.25.
Now, all eyes would be on the company’s earnings as the stock has recently come under pressure from its recent peak without any news. Moreover, a technical breakdown below its 50-day average price has been putting further pressure on the stock.
There are strong expectations from the iPhone maker, with analysts are estimating the company to report profit of $10.06 a share, up from its year ago profit of $6.40 a share. Revenue is estimated to grow by 49.20% to $36.81 billion, from $24.67 billion a year ago. The company guided $8.50 EPS on $32.50 in revenue.
If we go with the Whisper numbers, the company is expecting to report $11.57 a share on revenue of $41.87 billion. Product shipment is expected at iPhones: 31.73 million, iPods: 15.77 million, iPads: 14.17 million, Macs: 5.14 million.
Investors would closely watch for iPhone sales, considering recent worries of a slowdown.
Historically, Apple has better post earnings stock performance. However, if we want to continue with the recent trend, the company really needs to beat the analysts’ estimates by much higher margin.
Last quarter, the company had beaten then analysts’ estimates by 36.50% in terms of earnings and 18.90% in revenue.
Ben Reitzes, an analyst at Barclays Capital is quite optimistic about the company’s earnings and expecting iPhone sales to come in at around 33 million. He added that there is consensus that Apple will post strong double-digit numbers in iPad sales, which should add a bit of upside to the quarter as well.
The firm has an “overweight” rating on the stock and set a price target of $730.
Shares of AAPL have fallen about 13.50% from its recent peak of $644 largely on account of profit booking.
So, are you going to buy the stock on dips? Share your thoughts in the comment section below.