Apple (AAPL) Ticks Higher Ahead of Q3 Results

Apple (NASDAQ: AAPL) is modestly higher (+0.3% $94.23) ahead of third quarter earnings after the close. Analysts on average are looking for the iPhone giant to report EPS of $1.23 on revenues of $37.99 billion, representing year-over-year growth of 15% and 8%, respectively.

Data from StreetInsider.com's EPS Insider shows that Apple has beat the EPS consensus for the past four quarters with an average beat rate of 6%. The stock has moved an average of 3% higher in the weak following earnings.

Analysts have been mostly positive on the stock into results and estimates and the price target have been moving up in the the print.

In his preview for the quarter, Bernstein's Toni Sacconaghi said he experts Apple will report revenue of $37.6B and EPS of $1.24, or a little light on revs and a little better on EPS. He sees upside to gross margin guidance of 37-38%. They forecast iPhone sales of 34.1M versus consensus of ~34-34.5M and forecast iPad units of 14.4M units versusconsensus is ~14.3M.

Sacconaghi expects results this quarter to take a back seat to the upcoming product cycle. He notes, Apple stock has historically outperformed by 1100 bp and 560 bp on a relative basis in the two-month and one-month period preceding iPhone announcements, respectively, and we are currently around two months from an iPhone announcement. They would remain buyers into and after the quarter and rate shares Outperform with a price target of $100.

Apple typically reports results at 4:30PM ET and is expected to host its conference call at 5:00PM ET. An audio webcast is available here.

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