AAPL is expected to report third quarter earnings tonight after the close. There is a conference call scheduled for 17:00 (the company typically guides in the press release). 

Q3 Capital IQ consensus calls for EPS of $1.57 (versus $1.42 last year) on revenue of $44.94 bln (+6.1% YoY). 

  • The current consensus is within the company's typically conservative guidance range of $43.5-45.5 bln. 
  • The company is expected to guide for the fourth quarter where Capital IQ consensus calls for revenues of $49.3 bln.

Unit Metrics From Last Quarter:

  • The company reported Q2 iPads of 8.9 mln units versus 10.2 mln units last year. 
  • The company reported Q2 Macs of 4.2 mln units versus 4.0 mln units last year.
  • The next area of interest will be margins. Taking a look at last quarter, the company reported Q2 gross margin of 38.9% versus 39.4% last year. 

Options Data:

Based on AAPL options, the current implied volatility stands at ~ 25%, which is 60% higher than historical volatility (over the past 30 days). 

TECHS:

AAPL shares have outperformed the Nasdaq so far this year with AAPL rising by 26% vs a 13% gain in the index.

AAPL is trading near all-time highs. AAPL tends to have 4-6% reactions to earnings. 

On a positive report, look resistance near $151.00 while support is near the 145 level.