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Apple (AAPL) Q4 Earnings Expected at $113.39B Revenue, $1.99 EPS

Published on · Source: cnbc.com

Apple (AAPL) Q4 Earnings Expected at $113.39B Revenue, $1.99 EPS

AI Summary

Summarized by AI from the source below

Apple (AAPL) is set to report its fiscal fourth-quarter earnings after the bell on Monday, marking the first earnings call with new CEO John Ternus. Analysts expect earnings per share (EPS) of $1.99 and revenue of $113.39 billion, an 11% increase from $102.5 billion a year earlier. Projected iPhone sales for the quarter are $56.59 billion, including eight days of new iPhone 18 Pro sales.

The earnings will not include sales from the iPhone Duo, launched after the quarter closed, which faces supply shortages and reported durability issues affecting a small number of devices. Apple raised iPhone prices by $100, which may have affected demand. Investors will be keen to hear Ternus's insights on Apple's strategies in China, recent product launches, and ongoing challenges with memory and flash storage shortages.

Analyst sentiments show caution due to uncertainties around iPhone sales cycles, limited AI monetization, and concerns over gross margin sustainability. Bank of America highlights a potential margin drop despite tariff refunds, while Barclays maintains an underweight rating citing fading pricing benefits. The call at 5 p.m. ET could clarify how Apple plans to address these challenges going forward. The earnings report matters because it will inform investors about revenue growth and profit margins amid product launch issues and supply constraints, directly affecting Apple's financial outlook and stock performance.

Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.

Our take

Opinion from the Newsstocks AI desk, not investment advice

We think the anticipated 11% revenue growth shows underlying demand but supply and product issues, including the iPhone Duo's limited availability and durability concerns, introduce risks. The mixed analyst views and margin pressures suggest cautious investor sentiment. The upcoming earnings call will be critical for clarifying Apple's strategy under new CEO John Ternus, especially regarding supply constraints and China market plans.

Key numbers

Expected EPS
$1.99
Expected Revenue
$113.39 billion
Revenue Increase
11%
Projected iPhone Sales
$56.59 billion

What could help

  • Revenue is expected to grow 11% from a year earlier, indicating stronger sales.

What could hurt

  • Supply shortages and durability issues with the new iPhone Duo could hurt sales.
  • Gross margins are expected to decline after tariff refunds, raising profitability concerns.
  • Price increases on iPhones may have reduced demand during the quarter.

What to watch next

The earnings call on Monday at 5 p.m. ET will be the first with new CEO John Ternus speaking to investors.

The background

Earnings reports disclose a company's financial performance for a quarter. Investors use them to assess profitability, revenue growth, and future prospects.

Questions readers ask

What concerns do analysts have about Apple's upcoming earnings?

Analysts have concerns about supply shortages, gross margin declines, iPhone demand after a $100 price increase, and limited AI monetization.

About Apple Inc. (AAPL)

Apple designs and sells consumer electronics: the iPhone, Mac, iPad and Apple Watch. It also runs a fast-growing services business spanning the App Store, iCloud and Apple Pay.

The Information Technology sector covers hardware, software and semiconductor companies driving the digital economy.

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