What to Expect When Apple Reports After the Close

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Apple Inc. (NASDAQ: AAPL) is scheduled to release its fiscal second-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $2.36 in earnings per share (EPS) and $57.44 billion in revenue. The same period of last year reportedly had $2.73 in EPS and $61.14 billion in revenue.

Earlier this quarter, the long showdown between Apple and Qualcomm came to a conclusion with Qualcomm emerging the victor. Analysts were quick to jump in and give their two cents on Qualcomm and what is to come.

Also, Apple announced that it is partnering with Goldman Sachs to release the Apple Card. This seems to be a smart move from a loyalty perspective. Today’s consumers want to receive instant benefits from their reward programs, and by offering members cash back on a daily basis, the company is meeting this demand and differentiating itself from other credit cards that make members wait days or until the end of the month to redeem benefits.

The iPhone giant is near the top of the list of companies that are returning the most to investors via stock buybacks. Apple has the most cash of any public company, and it has been the largest repurchaser of its own shares. The company spent $10.1 billion on buybacks in the fourth quarter alone, though that was lower than the $19.4 billion spent in the third quarter.

Excluding Tuesday’s move, Apple had outperformed the broad markets, with its stock up about 30% year to date. In the past 52 weeks, the stock was up closer to 25%.

A few analysts weighed in on Apple ahead of the report:

  • JPMorgan has a Buy rating with a $230 price target.
  • UBS Group has a Buy rating with a $235 price target.
  • Morgan Stanley has an Overweight rating and a $234 target.
  • Goldman Sachs has a Neutral rating and a $182 price target.
  • Credit Suisse has a Hold rating with a $209 price target.
  • New Street Research has a Sell rating with a $170 price target.
  • Wedbush has an Outperform rating with a $225 price target.

Shares of Apple were last seen down nearly 2% at $201.21, in a 52-week range of $142.00 to $233.47. The stock has a consensus price target of $199.77.


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