Apple (AAPL) will report fourth quarter earnings tonight after the close.

Q4 Capital IQ consensus calls for EPS of $0.70 (-8% yr/yr) on revenue of $63.31 bln (-1% yr/yr).

The Street is expecting Q4 gross margins of 38.2% versus 38.0% last year.

The Street is expecting Q4 iPhone revenues (which are expected to decline to due delay of new iPhone 12 models) of $28.5 bln vs. $33.4 bln last year, wearables revenue of $7.6 bln vs. $6.5 bln last year, iPads revenue of $6.2 bln vs. $4.7 bln last year, and services revenue of $13.9 bln vs. $12.5 bln last year.

TECHS

AAPL has a $1.94 trillion valuation and currently trades at 34 times FY20 earnings.

Based on the weekly AAPL Weekly Oct30 $113 straddle, the options market is currently pricing in a move of ~5% in either direction by weekly expiration (Friday).

Suppliers to keep on note include: SWKS, CRUS, AVGO, QRVO, TSM, and QCOM, among others (SMH); SSNLF, LPL (for displays) and LITE, FNSR and IIVI (for FaceID).

RESULTS:

Apple beats by $0.03, beats on revs, but misses on iPhones revenue; co beats on other product categories; co did not provide Q1 guidance

Reports Q4 (Sep) earnings of $0.73 per share, excluding non-recurring items, $0.03 better than the S&P Capital IQ Consensus of $0.70; revenues rose 1.0% year/year to $64.7 bln vs the $63.33 bln S&P Capital IQ Consensus. Co did not issue Q1 guidance.

Co reports Q4 gross margins of 38.1% vs. 38.2% ests.

Co reports Q4 iPhone revenue of $26.4 bln vs. $28.5 bln ests versus $33.4 bln last year.

Co reports Q4 iPad revenue of $6.8 bln vs. $6.2 ests versus $4.7 bln last year.

Co reports Q4 wearables of $7.9 bln vs. $7.6 bln ests versus $6.5 bln last year.

Co reports Q4 services of $14.55 bln vs. $12.5 bln last year.

Tim Cook says COVID-19 pandemic is causing too much uncertainty to issue Q1 guidance. He is confident iPhones will show growth in Q1 - CNBC.

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