AAPL
Apple Inc. (NASDAQ: AAPL) is poised to release its fiscal Q2 2024 earnings today, May 2, 2024.
Expectations are tempered with projected declines in both revenue and earnings as compared to the previous year. Analysts from Visible Alpha suggest a revenue of $90.36 billion for the quarter, a decrease from $94.84 billion in Q2 FY 2023. Net income is also expected to drop to $23.26 billion from $24.16 billion a year earlier. Earnings per share (EPS) are anticipated at $1.50, slightly down from $1.52 in the same period last year.
| Q1 FY 2024 | Analyst Estimates Q2 FY 2024 | |
|---|---|---|
| Revenue | $119.58 billion | $90.36 billion |
| EPS | $2.18 | $1.50 |
| Net Income | $33.92 billion | $23.26 billion |
iPhone Sales Under the Microscope
Investor eyes are on iPhone sales, especially in China, where the market has shown signs of strain.
Sales are expected to have fallen to 51.6 million units this quarter from 58 million last year. This drop reflects a 15% decline in China, a steeper falloff than anticipated, according to CFRA's Angelo Zino. However, he notes this may have already been accounted for in Apple’s revised guidance earlier this year.
Future Prospects: AI Initiatives and Stock Buybacks
Beyond earnings, Apple's strategic directions, particularly in artificial intelligence (AI) and shareholder returns, are of high interest.
CEO Tim Cook hinted at upcoming AI developments, likely detailed further at the upcoming Worldwide Developers Conference in June.
Additionally, a proposed $90 billion stock buyback and a 3% dividend increase could bolster investor confidence amidst the current stock price slump, which has seen a nearly 12% decline since the start of 2024.
As Apple navigates these challenges, its ability to innovate and adapt to changing market dynamics will be crucial for maintaining its competitive edge. Investors and analysts alike await Thursday's earnings call for clearer signals on the company's strategic trajectory and market positioning.
