Apple (AAPL) will report third quarter earnings this afternoon with a call at 5:00 PM.

Third quarter S&P Capital IQ consensus calls for EPS of $2.10 (-10% yr/yr) on revenue of $53.38 bln (+0.2% yr/yr).

The company guided for revenue of $52.5-54.5 bln and gross margin of 37-38% (vs. 38.3% last year). Q3 gross margins ests stand at 38.1%

The Street is expecting Q3 iPhone revenue of $26.0 bln (-15% yr/yr) and a services gross margin up slightly from 63.8% last quarter. The company no longer breaks out unit sales for its hardware.

TECHS:

Based on the weekly AAPL Aug02 $207.50 straddle, the options market is currently pricing in a move of ~5% in either direction by weekly expiration (Friday).

On a positive report, look for resistance near the $211.50-212.50 area, while support sits near the $200-201

Suppliers to watch out for: SSNLF, LPL (for displays) and LITE, FNSR and IIVI (for FaceID.) Other suppliers include: SWKS, CRUS, AVGO, QRVO, TSM, and QCOM, among others. (SMH).

RESULTS:

Apple prelim Q3 $2.18 vs $2.10 S&P Capital IQ Consensus Estimate; revs $53.8 bln vs $53.39 bln S&P Capital IQ Consensus Estimate; sees Q4 rev $61-64 bln vs. $60.92 bln consensus

Apple: Co reports Q3 gross margin of 37.3% vs ests of 38.1% vs 38.3% last year
Apple: Co sees Q4 gross margins of 37.5-38.5% vs ests of 38.3% vs 38.3% last year.

Apple: Co reports Q3 services gross margins of 64.1% vs ests of slight improvement from last quarter of 63.8%

Reports Q3 (Jun) earnings of $2.18 per share, $0.08 better than the S&P Capital IQ Consensus of $2.10; revenues rose 1.0% year/year to $53.81 bln vs the $53.39 bln S&P Capital IQ Consensus.

  • iPhone revenue -12% to $26 bln vs. $26 bln ests

  • Service rev +13% to $11.46 bln; iPad +8% to $5.0 bln; wearables, home accessories +48% to $5.5 bln

  • Americas rev +2% to $25.06 bln Europe rev -2% to $11.9 bln China rev -4% to $9.16 bln Japan rev +6% to $4.08 bln Asia Pac +13% to $3.59 bln

  • Q3 gross margin of 37.6% vs ests of 38.1% vs 38.3% last year; services gross margins 64.1% vs ests for slight improvement from 63.8% last quarter

    AAPL issues upside guidance for Q4, sees Q4 revs of $61-64 bln vs. $60.92 bln S&P Capital IQ Consensus; sees gross margin 37.5-38.5% vs ests of 38.3% and 38.3% last year.







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