Apple (AAPL) earnings Q3 2020

Apple (AAPL) earnings Q3 2020

Tim Cook, CEO of Apple, speaks throughout an Apple particular occasion on the Steve Jobs Theater in Cupertino, California, March 25, 2019.

Stephen Lam | Reuters

Apple is ready to report fiscal third-quarter earnings after the bell Thursday, providing a vital replace on the corporate’s standings amid the coronavirus pandemic. Despite widespread retail closures throughout the quarter, especially in the United States, Apple beforehand touted each work-from-home traits and powerful on-line gross sales as delivering a lift to general operations.

Here’s what Wall Street is anticipating:

  • EPS: $2.04, in line with Refinitiv consensus estimates
  • Revenue: $52.25 billion, in line with Refinitiv consensus estimates

While the pandemic has deeply impacted Apple’s operations, the corporate’s inventory has nonetheless continued to rise. As of Wednesday’s shut, Apple shares had been up 29.6% previously three months, outperforming the S&P 500, which is up 13.7% over the identical time interval.

The firm did not present steering for the third quarter, so how properly it is truly fared throughout the pandemic can be on most traders’ minds. Investors will even be carefully watching to see if Apple points forward-looking steering for the quarter ending in September.

A profitable quarter for Apple is commonly judged by {hardware} gross sales. Morgan Stanley’s Katy Huberty wrote in a observe final month that her agency is anticipating “stable near-term” iPhone and iPad shipments, and believes that customers are beginning to really feel assured shopping for expertise once more. 

Apple’s companies enterprise can also be vital for the corporate. In 2019, it introduced in over $46 billion, accounting for almost 18% of the corporate’s income. Apple publicly set a purpose for companies income to high $50 billion in fiscal 2020. However, companies launched final 12 months, similar to Apple TV+ and Apple News+, do not seem to have gained plenty of traction, and the corporate’s most necessary service, the App Store, has drawn criticism, together with throughout a congressional listening to Wednesday. 

One massive query going through the corporate is when new iPhone fashions can be launched this fall. The firm hasn’t commented on any disruptions to its launch course of, however the pandemic has made enterprise journey considerably more durable. China’s battle towards the virus and related shutdowns earlier this 12 months may make the power to provide hundreds of thousands of difficult computer systems on schedule considerably more durable.

This is breaking information. Please test again for updates. 

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