Apple Inc.’s iPhone business was hit by COVID-19 curbs in China. The company’s upcoming earnings report will show how deeply the company was impacted and how quickly it’s been able to recover.
What to expect Earnings: Analysts tracked by FactSet anticipate that Apple earned $1.94 a share in its fiscal first quarter, down from $2.10 a share a year prior. According to Estimize, which crowdsources projections from hedge funds, academics, and others, the average estimate is for $1.98 a share. Analysts model $15.3 billion in revenue from wearables, home and accessories for the quarter, up from $14.7 billion a year earlier. Services revenue is expected to rise to $20.4 billion from $19.5 billion.
What else to watch for While Evercore ISI analyst Amit Daryanani saw some possible “downside” to December-quarter driven by iPhone dynamics, he said that a pullback in Apple’s stock suggests “a miss shouldn’t have a material impact on shares as long as Apple provides a guide that indicates they expect to recover the lost sales as we move through FY23.”“With supply chain challenges largely normalized, we now believe AAPL is entering a period of slower demand due to macro factors,” Cowen & Co.