Apple Earnings: What To Expect

Apple will report its Q3 earnings report Tuesday at 5 p.m. ET. And most indications are that it’ll outperform expectations.

What analysts are expecting

Here are some projections of the key metrics expected by some analysts from Apple’s report:

• A 37% increase in earnings per share.

• More than 42 million iPhones sold.

• Overall revenue of $52 billion.

Apple’s cash cows

The company’s cash cow is still the iPhone, which comprised 62% of its total revenue prior to March of this year. Apple sold 52 million iPhones during the second quarter, and it’s expected to have sold around 10 million less this quarter as anticipation builds toward the release of new models in the Fall.

The key is that Apple is, on average, making more money from each iPhone sale as people gravitate to more expensive models, like the iPhone X.

But revenue is also expected to be up in Apple’s other key business areas: Services revenue is up by 24%, iPad sales are up 6%, and its other services (App Store, iCloud, etc.) up 37%, according to reports.

The race to $1 trillion

While other tech companies (think Facebook, Twitter, Netflix) have faltered this earnings season, Apple is set to pull ahead of the pack and remain neck-and-neck with Amazon as the world’s highest-valued companies.

Experts expect either Apple or Amazon to be the first to reach a $1 trillion market-cap—the winner will be the first company in history to achieve a 12-figure valuation.

Be smart

Though Apple’s stock has performed well in the past and is benefitting from rosy forecasts, it’s still subjected to market risks. The market is volatile, and, as always, risk can be lessened to a degree by diversifying your portfolio and staying informed.

You can get a slice of Apple and other tech companies using Stash.