Tuesday afternoon, all traders especially tech traders would
have their eyes wide open while Apple posts its Q3 earnings. This quarter is
usually quite slow on sales for apple due to the estimated product refresh
during the end of the year before the holiday season. Expectations would be
quite high from Apple this time around as we saw a massive beat last earnings
and the surge in the share price over the past few months. Below are the
results that the company has posted in the past.
|
Past Results
|
Q3 2012
|
Q3 2013
|
Q2 2014
|
|
Revenues ($B)
|
$35.02
|
$35.32
|
$45.65
|
|
EPS
|
$9.32
|
$7.47
|
$11.62
|
|
EPS – split adjusted
|
$1.33
|
$1.07
|
$1.66
|
|
Gross Margin
|
42.81%
|
36.87%
|
39.32%
|
|
Operating Margin
|
33.04%
|
26.05%
|
29.78%
|
|
Profit Margin
|
25.19%
|
19.53%
|
22.40%
|
During the last earnings here’s the guidance from Apple for fiscal
Q3, 2014:
|
Guidance
|
Q3 2014
|
|
Revenue ($B)
|
$36 - $38
|
|
Expected EPS –
split adjusted
|
$1.23
|
|
Gross Margin
|
37% - 38%
|
|
Operating expenses
($B)
|
$4.4 – $4.5
|
|
Other Income
|
$200m
|
Estimating the Q2 diluted share count according to the
guidance we came up with the figure of $1.23, thus any EPS number that is
projected between $1.08 and $1.23 would be seen as growth year on year for Q3.
On the product side we could see a growth on the sales numbers on the iPhone
due to addition of carriers like China Mobile and new products like the iPhone
5c added in the phone line- up. The iPad could see a rise in sales numbers as
compared to the last years as the sales fell short of estimates last year due
to problems in inventories. Reports suggest PC sales to have increased thanks
to the strong ecosystem of Apple whereas the iPod could see a strong decline in
its product line up due to Apple moving towards wearables in the near future.
Will Apple beat its earnings tomorrow? What are your thoughts on the earnings?
