{"id":160939,"date":"2021-01-22T23:49:00","date_gmt":"2021-01-22T20:49:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/earnings-outlook-get-ready-for-apples-first-100-billion-quarter-in-history\/"},"modified":"2021-01-22T23:49:00","modified_gmt":"2021-01-22T20:49:00","slug":"earnings-outlook-get-ready-for-apples-first-100-billion-quarter-in-history","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-get-ready-for-apples-first-100-billion-quarter-in-history\/","title":{"rendered":"#Earnings Outlook: Get ready for Apple\u2019s first $100 billion quarter in history"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3be8f1516db\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3be8f1516db\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-get-ready-for-apples-first-100-billion-quarter-in-history\/#Apple_earnings_preview_Successful_iPhone_12_holiday_sales_are_expected_to_help_drive_record_revenue_above_milestone_mark\" >Apple earnings preview: Successful iPhone 12 holiday sales are expected to help drive record revenue above milestone mark<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-get-ready-for-apples-first-100-billion-quarter-in-history\/#What_to_expect\" >What to expect<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-get-ready-for-apples-first-100-billion-quarter-in-history\/#What_else_to_watch_for\" >What else to watch for<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-outlook-get-ready-for-apples-first-100-billion-quarter-in-history\/#Emily_Bary\" >Emily Bary<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Earnings Outlook: Get ready for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>le\u2019s first $100 billion quarter in history<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Apple_earnings_preview_Successful_iPhone_12_holiday_sales_are_expected_to_help_drive_record_revenue_above_milestone_mark\"><\/span>\n  Apple earnings preview: Successful iPhone 12 holiday sales are expected to help drive record revenue above milestone mark<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000137024\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Even a pandemic can\u2019t stop Apple Inc. from hitting new records.<\/p>\n<p> The smartphone giant is expected to post its first-ever quarter with more than $100 billion in revenue Wednesday, driven by a strong early performance for its new iPhone 12 line as well as continued demand for Macs and iPads for remote work and school needs. <\/p>\n<div class=\"paywall\">\n       Apple\u2019s<br \/>\n        AAPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202934861\/composite\" class=\"positive\">+1.93%<\/bg-quote><br \/>\n       fiscal first-quarter results will be the first to include sales from the iPhone 12 family of devices, which began to roll out in October. Though Apple faced supply constraints on some models, the debut of Apple\u2019s first 5G-enabled phones has arguably been the company\u2019s most successful product launch in five years, in the view of Morgan Stanley analyst Katy Huberty. <\/p>\n<p>Customers seem to be increasingly opting for higher-priced iPhone models and more expensive storage configurations, which would boost the average selling price of devices and help the company\u2019s profit margin. Apple no longer provides unit-sales metrics that shed light on its average selling prices, but the company usually offers some qualitative comments about which devices are performing best. <\/p>\n<p>Apple has also seen strong sales of Macs and iPads amid the pandemic, with more people working and studying from home, and that momentum is expected to have continued into the fiscal first quarter. The company launched new iPads late last year as well as its first computers to feature the company\u2019s own custom chip.<\/p>\n<p>Analysts expect record performance for the company\u2019s services category as well, though one area may not hold up as well. Apple has done a good job of transitioning sales to its online store given the COVID-19 crisis, but it\u2019s \u201coverly reliant on in-store customer purchases\u201d to drive sales of its AppleCare insurance product, Huberty wrote. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"What_to_expect\"><\/span>What to expect<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p><strong>Earnings:<\/strong> Analysts tracked by FactSet expect that Apple earned $1.41 a share in the December quarter, up from $1.25 a year earlier. On Estimize, which crowdsources estimates from hedge funds, academics and others, the average projection calls for $1.45 a share. <\/p>\n<p><strong>Revenue: <\/strong>The FactSet consensus models a record $102.54 billion in revenue for Apple\u2019s fiscal first quarter, up from $91.82 billion a year prior. The Estimize consensus is for $103.76 billion.<\/p>\n<p>Analysts tracked by FactSet model $59.58 billion in iPhone revenue for Apple, up from $55.96 billion a year earlier. Apple declined to give formal guidance for the quarter on the last earnings call, but Chief Financial Officer Luca Maestri said at the time to expect growth in iPhone revenue even though devices would begin shipping later in the quarter than they did a year prior. <\/p>\n<p>The FactSet consensus calls for $7.38 billion in Pad revenue, up from $5.98 billion; $8.63 billion in Mac revenue, up from $7.16 billion; $15.17 billion in services revenue, up from $12.72 billion; and $11.49 billion in revenue for the wearables, home, and accessories category, up from $10.01 billion.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>Stock movement:<\/strong> Apple shares have gained following three of the past five earnings reports, and the shares are up 72% over the past year as the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"negative\">-0.36%<\/bg-quote><span>,<\/span><br \/>\n       which counts Apple as a component, has gained 7%. <\/p>\n<p>Of the 41 analysts tracked by FactSet who cover Apple\u2019s stock, 28 have buy ratings, 10 have hold ratings and three have sell ratings, with an average price target of $132.71.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"What_else_to_watch_for\"><\/span>What else to watch for<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Apple has declined to give a quantitative financial forecast in each of its last three earnings reports because of uncertainty related to the COVID-19 pandemic, and the trend will likely continue this quarter. <\/p>\n<p>\u201cGiven lingering uncertainty, we expect Apple is more likely to provide \u2018guidelines\u2019 rather than \u2018guidance\u2019 for Q2,\u201d Bernstein analyst Toni Sacconaghi wrote in a note to clients. In addition to the many unknowns around the pandemic, Apple\u2019s late launch timing of the latest batch of iPhones means that the March quarter could be stronger than usual, since there were fewer iPhone 12 \u201cselling days\u201d leading up to it. <\/p>\n<p>Sacconaghi will also be watching for commentary on Apple\u2019s ongoing dispute with app developers led by Epic <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>s, which sued Apple and claimed that the company\u2019s App Store rules around in-app purchases are monopolistic. Apple lowered commission rates for smaller developers that make up the bulk of those on the App Store, even as these developers don\u2019t contribute too much to Apple\u2019s overall revenue from the platform.<\/p>\n<p><strong>More on Apple and Epic: \u2018Fortnite\u2019 dispute might open floodgates to serious scrutiny of Apple<\/strong><\/p>\n<p>\u201cWe believe that Apple\u2019s decision to lower commissions was politically astute, allowing the company to portray itself as a promoter of small business, while also superficially addressing the complaint that its high app store fees are stifling competition and innovation,\u201d wrote Sacconaghi, who has a market perform rating and $120 price target on the stock. \u201cIt remains to be seen if Apple will provide further commentary on this issue; that said, we continue to believe that the legal risk to App Store revenue is low.\u201d<\/p>\n<p>Morgan Stanley\u2019s Huberty is interested in the company\u2019s China momentum. She suspects that the company is benefiting from weakness at Huawei, citing data that suggest customers are switching from Huawei to Apple devices at the highest rate in 15 months. She has an overweight rating and $152 price target on the stock.<\/p>\n<p>Goldman Sachs analyst Rod Hall echoed the point about Huawei\u2019s challenges, though he\u2019s concerned \u201cthat Apple has already begun cutting iPhone orders\u201d and that build orders for the first half of 2021 suggest a move toward models with lower average selling prices. <\/p>\n<p><strong>For more: Apple bear throws cold water on \u2018supercycle\u2019 story<\/strong><\/p>\n<p>\u201cThese changes are consistent, in our opinion, with a normal iPhone redesign cycle but are not consistent with a supercycle,\u201d he wrote. \u201cAs a result we continue to expect iPhone replacement rates to resume their ongoing decline in 2021.\u201d Hall has a sell rating and $85 target price on Apple shares. <\/p>\n<p>Monness, Crespi, Hardt &amp; Co. analyst Brian White highlights several new products and services that Apple could shed light on during the quarterly call. During the December quarter, the company began selling its AirPods Max over-the-ear headphones and rolled out both a subscription fitness offering and a way to bundle service together for a discount. <\/p>\n<p><strong>Read: Apple is getting an earful over the AirPods Max\u2019s $549 price tag <\/strong><\/p>\n<p>\u201cIn our view, Apple\u2019s portfolio was positioned better-than-ever heading into the recent holiday season, while product and service updates position Planet Apple well in 2021,\u201d he wrote. White has a buy rating and $144 price target on Apple shares.  <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Emily Bary\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Emily_Bary\"><\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/marketwatch.com\/author\/emily-bary?mod=MW_author_byline\">Emily Bary<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D21740483424%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Earnings Outlook: Get ready for Apple\u2019s first $100 billion quarter in history&#8221; Apple earnings preview: Successful iPhone 12 holiday sales are expected to help drive record revenue above milestone mark Even a pandemic can\u2019t stop Apple Inc. from hitting new records. The smartphone giant is expected to post its first-ever quarter with more than $100&#8230;<\/p>\n","protected":false},"author":1,"featured_media":105324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-160939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/160939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=160939"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/160939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/105324"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=160939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=160939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=160939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}