Apple (AAPL) will report its fiscal Q2 earnings after the bell on Thursday with the tech giant expected to report its second straight year-over-year decline in quarterly revenue.
Apple, like other electronics makers, is dealing with a steep drop off in PC and tablet sales. Both makers Intel (INTC) and AMD (AMD) reported dramatic declines in chip revenue, and Apple appears to be set to announce its own significant declines in Mac and iPad sales.
Here are the numbers Wall Street is looking for in the report, according to data from Bloomberg, compared to how Apple performed in the same quarter last year.
Revenue: $92.6 billion expected versus $97.3 billion in Q2 2022
Adj. EPS: $1.43 expected versus $1.52 in Q2 2022
iPhone: $48.9 billion expected versus $50.6 billion in Q2 2022
Services: $21.1 billion expected versus $19.8 billion in Q2 2022
Mac: $7.7 billion expected versus $10.4 billion in Q2 2022
iPad: $6.7 billion expected versus $7.6 billion in Q2 2022
Wearables: $8.5 billion expected versus $8.8 billion in Q2 2022
In a recent investor note, BofA Global Research analyst Wamsi Mohan wrote that he believes Apple will report a slight beat in Q2, but warns that guidance for Q3 could come in lighter than expected. UBS analyst David Vogt, meanwhile, says that iPhone sell-through to retailers and carriers in the second half of the year could come in lower than anticipated.
While iPhone sales are expected to decline slightly in Q2, Apple’s Mac business is set to drop a harsh 25% year-over-year, as fewer people need to buy laptops and desktops following the explosive growth the industry experienced during the pandemic.
According to Gartner, worldwide PC shipments fell 30% year-over-year in the first quarter of 2023. And that’s hammering chip makers like Intel and AMD, which reported sharp declines in their processor businesses.
Apple’s Services growth is also expected to decline year-over-year, but, more importantly, investors will be looking for any news on how much interest the company’s new high-yield savings account is drawing from consumers.
Outside of earnings, Apple is preparing to host its annual WWDC conference where the company is largely expected to show off its highly anticipated AR/VR headset. The device, which the company has yet to confirm exists, could provide Apple with another revenue stream, and set up the firm as a key player in the still-nascent market.
By Daniel Howley, tech editor at Yahoo Finance. Follow him @DanielHowley
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Source: https://finance.yahoo.com/news/apple-q2-earnings-141710458.html