After posting stellar second quarter results in May, Apple (AAPL) will be back with its third quarter results after market close on Tuesday. Even though the third quarter is considered a generally slow period of iPhone sales as new models will be set to launch in September, the positive sentiments surrounding this stock has hardly changed.
To add more excitement, Amazon (AMZN) just touched an all-time high on Friday pushing its market value beyond $900 billion and people can’t stop speculating about who will be the first to reach the prestigious $1 trillion mark.
Despite a slowdown in iPhone sales, the premium pricing of its latest offerings including iPhone X, iPhone 8 and iPhone 8S is expected to keep margins intact. Analysts expect the company to report iPhone sales of 43 million for the quarter, 4% higher than last year.
Wall Street anticipates Apple to post earnings of around $2.19 per share on revenue of $52.37 billion.
On the other hand, it needs to be seen if the premium pricing has backfired in markets such as China where local players are coming up with cheaper models that boast of the same features as an iPhone.
In the second half of 2018, Apple is expected to launch three new iPhone models.
Services and wearables segments are also expected to hog the limelight during the third quarter. The wearables business dominated by Apple Watch is currently the size of a Fortune 300 company. On the other hand, home products have been driving the Other Products unit higher for the past few quarters, thanks to a successful line of smart home products. Meanwhile, revenue from services is expected to jump 28% in the third quarter.
During the third quarter, the Wall Street anticipates Apple to post earnings of around $2.19 per share on revenue of $52.37 billion. This revenue represents a 15% upside from the year-over period.
Apple shares were trading down 1.8% at 3:45 PM ET on Friday.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,