What Wall Street Expects From Apples Earnings Report Today

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Apple's Earnings Report: What Wall Street Expects

Apple (AAPL) is set to release its earnings report for the quarter ended December 2021 today, after the market closes. The tech giant is expected to post strong results, driven by robust demand for its iPhone 13 lineup, as well as its other products and services. Here are some key points to watch for in Apple's earnings report, based on Wall Street analysts' estimates and forecasts.

Revenue and Earnings Growth

According to Zacks Equity Research, Wall Street expects Apple to report quarterly earnings of $1.68 per share, up 66.7% year over year. Revenues are expected to be $120.48 billion, up 32.5% from the year-ago quarter. This would mark the highest quarterly revenue and earnings in Apple's history, surpassing the previous records set in the first quarter of fiscal 2020.

Apple's revenue growth is likely to be fueled by strong sales of its iPhone 13 models, which were launched in September 2021 and have received positive reviews from critics and customers alike. The iPhone 13 features a faster processor, improved cameras, longer battery life, and a smaller notch. According to Counterpoint Research, the iPhone 13 series accounted for 40% of Apple's global smartphone sales in October 2021, up from 24% for the iPhone 12 series in October 2020.

Apple's other products and services are also expected to contribute to its revenue growth. The company launched new versions of its iPad and iPad mini devices, as well as new models of its Apple Watch and AirPods in the fourth quarter of 2021. These products are likely to benefit from the holiday season demand and the ongoing shift to remote work and learning amid the pandemic. Apple's services segment, which includes its App Store, Apple Music, Apple TV+, iCloud, and Apple Pay, is also expected to grow steadily, as more users subscribe to its offerings and spend more time on its platforms.

Supply Chain Challenges

One of the main challenges that Apple faces in its earnings report is the impact of the global chip shortage and the COVID-19 related disruptions on its supply chain and production capacity. The company has warned that these factors could limit its ability to meet the strong demand for its products, especially its iPhones.

In its previous earnings call, Apple said that it expected supply constraints to reduce its revenue by about $6 billion in the fourth quarter of fiscal 2021. The company also said that it expected the supply issues to affect all of its product categories, but more severely for the iPhone and iPad. Apple CEO Tim Cook said that the company was working hard to mitigate the supply challenges and optimize its inventory levels.

Wall Street analysts will be closely watching how Apple manages its supply chain situation and how it affects its margins and profitability. They will also be looking for any guidance or outlook from the company on how it plans to address the supply challenges in the coming quarters.

Holiday Quarter Outlook

Another key point to watch for in Apple's earnings report is its outlook for the current quarter, which is typically its strongest quarter of the year due to the holiday season demand. Wall Street expects Apple to continue its revenue and earnings growth momentum in the first quarter of fiscal 2022.

According to Zacks Equity Research, Wall Street expects Apple to report quarterly earnings of $1.86 per share, up 10.7% year over year. Revenues are expected to be $117.50 billion, up 9.8% from the year-ago quarter.

Apple's outlook will depend largely on how it navigates the supply chain challenges and how it meets the demand for its products, especially its iPhones. The company will also face increased competition from rivals such as Samsung, Google, Microsoft, and Amazon, who have launched their own flagship devices and services in recent months.

Apple's stock price has been volatile ahead of its earnings report, as investors weigh the potential upside and downside risks. The stock hit a record high of $182.94 per share in January 2022, but has since fallen to around $148 per share as of February 2nd. The stock has aa16f39245