In case you have not heard.
A less shiny Apple than in the past - but doing well lately - will report earnings after the close.
What is expected:
- Earnings: $1.65 vs $1.96 a year earlier
- Revenue: $46.9B vs $51.5B last year. Revenues have declined the last 2 quarters after 13 years of advancess
- iPhone sales: iPhone 7 sales are not expected to make a big impact as it was introduced at the end of the quarter. In addition, the fallout from the Samsung Galaxy Note 7 is also too new to see the impact from crossovers into Apple. The expectations for sales are 45 million compared to 42 million last year.
- Forecast for 4Q: The revenue guidance is expected to be $74.9B for 4Q. That quarter includes the holiday selling season. That is 1 B less than a year ago. Analysts are saying that if the number is larger, it implies better sales for the iPhone7.
Other financials:
- EPS: $8.56
- P/E: $13.78
- Dividend $2.28, Dividend yield is 1.93%.
Apples stock is up 31% from the May low of $89.47. The 50 day MA is at 111.9196 (the price is trading at $117.84 currently. That MA will be key support should there be a dip. A move below (and staying below) would not look too hot technically. Back in September, there was a break below the 50 day MA, but the 100 day MA held like a charm. The 100 day MA is down at 105.79 currently.
On the topside, the 120.00 level were swing highs in Nov and Dec 2015. The high price in November extended to 123.82. The high price for the stock came in at $134.84 on April 28, 2015.
Can the stock deliver and justify the recent run up? Pay attention to the guidance for 4Q. The iPhone7 and Samsung positive fallout is too new for this quarter, but if Apple is seeing favorable trends, it will show up in the forward guidance numbers.
Amazon - a more growth oriented company - will be reporting after the close on Thursday. Alphabet (i.e. Google) will also report on Thursday. Facebook earnings will be released on November 2nd. Netflix has already reported for the quarter.
