Apple (AAPL) is expected to report second quarter earnings tonight after the close. There is a conference call scheduled for 17:00 ET.

Q2 Capital IQ consensus calls for EPS of $2.26 (-10.8% yr/yr) on revenue to $54.6 bln (-5% yr/yr).

The Street is expecting Q2 gross margins to be 38.4% versus 37.6% last year.

The company is expected to guide for Q3 revenues where Capital IQ consensus stands at $51.42 bln. The Street is expecting Q3 gross margins to be near 38.5%

The company announced in mid-February that it would not meet its guidance for the March quarter which previously stood at $63-67 bln for revenues and 38-39% for gross margins due to the COVID-19 pandemic.

Worldwide iPhone supply is temporarily constrained. Demand for Apple's products within China has been affected.

Interest will be around the timing of the release of the highly anticipated 5G iPhone.

AAPL will also update its dividend and share repurchase program.

TECHS:

Apple has a $1.28 trillion valuation and trades at ~23 FY20 EPS estimates.

Based on the weekly AAPL May01 $288 straddle, the market is currently pricing in a move of ~5% in either direction by weekly expiration (Friday).

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

RESULTS:

Apple prelim Q2 $2.55 vs $2.26 S&P Capital IQ Consensus Estimate; revs $58.31 bln vs $54.64 bln S&P Capital IQ Consensus Estimate

Apple reports Q2 category sales

  • Q2 iPhone revenues $28.96 bln vs $27.9 bln ests.

  • Q2 iPads revenues $4.36 bln vs $4.33 bln ests.

  • Q2 Wearables revenues $6.28 bln vs $6.93 bln ests.

  • Q2 Services revenues $13.35 bln vs $12.6 bln.

Apple posts a top and bottom line beat lead by iPhones and services; does not provide Q3 guidance; increases dividend 6% to $0.82/share; increases share repurchase program by $50 bln  

  • Reports Q2 (Mar) earnings of $2.55 per share, excluding non-recurring items, $0.29 better than the S&P Capital IQ Consensus of $2.26; revenues rose 0.5% year/year to $58.31 bln vs the $54.64 bln S&P Capital IQ Consensus.

  • Co did not provide Q3 guidance for revenues or gross margins. Tim Cook tells CNBC says they are not giving guidance due to a lack of visibility. Tim Cook tells CNBC there has been recovery in April. He expects iPad sales to improve yr/yr. He is also seeing TV Plus numbers increase.

  • Q2 iPhone revenues $28.96 bln vs $27.9 bln ests.

  • Q2 iPads revenues $4.36 bln vs $4.33 bln ests.

  • Q2 Wearables revenues $6.28 bln vs $6.93 bln ests.

  • Q2 Services revenues $13.35 bln vs $12.6 bln.

  • Q2 gross margins 38.3% vs 38.4% ests versus 37.6% last year.

  • Q2 China revenues -8% yr/yr to $9.46 bln.

  • Apple increases cash dividend to $0.82/share from $0.77/share; authorizes an increase of $50 bln to existing share repurchase program.

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