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

Capital IQ consensus calls for EPS of $1.43 (versus $1.40 last year) on revenue of $93.993 billion (+5% yr/yr). The Street is expecting Q2 gross margins of 43.2% versus 42.5% last year (guidance 42.5-43.5%).

The company stopped providing exact guidance once the pandemic began. It will be interesting when and if the company starts providing exact guidance again. Q3 (Jun) Capital IQ consensus calls for EPS of $1.24 & $85.96 bln. The Street is expecting Q3 gross margins of 43.1% versus 43.3% last year.

Wall Street is expecting:

  • Q2 iPhone revenue of $47.7 bln versus $47.9 bln last year.

  • Q2 iPad revenue of $7.2 bln versus $7.8 bln last year.

  • Q2 Services revenue of $19.6 bln versus $19.1 bln last year.

  • Q2 wearables revenue of $8.9 bln versus $7.8 bln last year.

  • Q2 Mac revenue of $9.4 bln versus $9.1 bln last year.

AAPL has missed on revenues once over the last four quarters.

TECHS:

AAPL has a $2.60 trillion valuation and currently trades at 26 times FY22 earnings.

Based on the weekly AAPL Weekly Apr30 $160 straddle, the options market is currently pricing in a move of ~5% in either direction by weekly expiration (Friday).

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

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