Apple Earnings Are Thursday. All Eyes Are on iPhone

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Apple stock is off 13% since it reported June quarter results.

Apple reports financial results for the September quarter after the close of trading on Thursday, and all eyes will be on the progress of the company’s recently launched iPhone 15 smartphones. What the Street most wants from Apple is a reason for optimism that it can meaningfully break out of its recent malaise. Analysts expect revenues to decline from the year-ago level for a fourth straight quarter.

Morgan Stanley analyst Erik Woodring wrote in a research note previewing the quarter that while September quarter results could beat estimates, there is a risk that December quarter commentary could be below consensus, “creating a tactically cautious setup.

On the company’s last earnings call, CFO Luca Maestri said that September quarter revenue would show a decline comparable to the 1% dip in the June quarter. He also said that iPhone and Services revenue would accelerate from the June quarter, but that both Mac and iPad sales would be down double-digits from the year ago-quarter. Maestri projected gross margin in the quarter of 44% to 45%.

For the September 2023 fiscal year, the consensus calls for revenue of $382.9 billion, down 3% from FY 2022, with profits of $6.06 a share, down from $6.11 last year.

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