Apple (AAPL) will report first quarter FY22 earnings tonight after the close. There is a conference call scheduled for 5pm ET.
Q1 Capital IQ consensus calls for EPS of $1.89 versus $1.69 last year on revenue of $118.5 bln (+6% yr/yr). The Street is expecting Q1 gross margins of 41.6% versus 39.8% last year.
Apple has not provided exact guidance since the pandemic began.
Q2 Capital IQ consensus is looking for EPS of $1.32 and revenues of $90.2 bln. The Street is expecting Q2 gross margins of 42.1%.
Segments:
Expected Q1 iPhone revenue sits at $67.5 bln vs. $65.6 bln last year,
Mac revenue of $9.5 bln versus $8.7 bln last year,
iPad revenue of $7.8 bln vs. $8.4 bln last year, wearables revenue of $14.0 bln versus $13.0 bln last year,
Services revenue of $19.7 bln versus $15.8 bln last year.
Last quarter's main challenge was larger than expected supply constraints. Investors will watch closely to see if any of these issues have softened. This should be a bellwether quarter for semi’s and the supply chain.
TECHS:
AAPL has a $2.61 trillion valuation and currently trades at 28 times FY22 earnings.
Based on this weeks AAPL Jan28 $160 straddle, the options market is currently pricing in a move of ~5% in either direction by weekly expiration (Friday).
Suppliers to Watch:
SWKS, CRUS, AVGO, QRVO, TSM, and QCOM, among others (SMH); SSNLF, LPL (for displays) and LITE, and IIVI (for FaceID).
If you liked this content please click the ❤️ below and/or share this post.
SHAMLESS PLUGS
CLICK HERE TO CHECK OUT MY 2021 PREVIEW OPINION PACKET. OVER 80 PAGES OF CONTENT AND INFORMATION AVAILABLE HERE.
TOTALLY FREE Trading Packet!
Click here to get my packet that shows you how I traded $600 into $100K FOR FREE.
This packet will explain to you in depth how I trade and how I manage my risk.
I am happy to share this. Just use the code KPAKFRAUD at checkout and you will get it TOTALLY FREE. You will pay absolutely nothing.