Apple (AAPL) Q2 Preview: Results Seen Solid, Guidance Seen Weak and Capital Return Seen Higher
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Shares of Apple (NASDAQ: AAPL) are down 1% into its second quarter earnings after the close. On average, analysts expect the iPhone maker to post EPS of $10.18 and revenues of $43.53 billion, representing growth of 0.9% and (0.2%), respectively.
According to data at StreetInsider.com's EPS Insider, Apple has beaten the EPS consensus by an average of 2.4% over the last four quarters and has an average one-week upside move of 1.9% over the week following earnings.
Analysts are expecting a solid but ho-hum quarter from Apple. Goldman Sachs Bill Shope recently raised his forecasts for revenues and EPS of $43.88 billion and $10.42, up from $43.85 billion/$10.30 primarily due to a lower share count. However, he said the key risk for the earnings release is a below-consensus June quarter guide.
On guidance, Shope is modeling June quarter revenues and EPS of $37.5 billion/$8.92 (down from $39.72 billion/$9.38) versus consensus of $38.26 billion/$8.50. Also, despite some recent cuts to the June quarter estimates, Susquehanna's Chris Caso thinks Street estimates are still too high for the quarter.
In addition to earnings, many expect the company to raise its share repurchase plan and/or its dividend. In an April report, StreetInsider.com noted that some are expecting Apple to raise the share repurchase plan by another $25-$50 billion and raise its dividend 10-20%.
Apple usually posts results at 4:30PM ET. Apple will host its conference call to discuss the results at 5PM ET.
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