7:03 AM, May 1, 2017 — Apple (AAPL) is expected by analysts to report year-on-year gains in fiscal second quarter revenue and adjusted earnings per share when the consumer-technology company releases its results on Tuesday afternoon, boosted by continued strength of the iPhone, especially as more consumers are expected to have switched to the higher-priced Plus model.
For the quarter ended in March, the mean estimate of analysts polled by Capital IQ is for adjusted earnings per share of $2.02, up from $1.90 in the year-earlier quarter, on revenue of $53.08 billion, up from the year-earlier period’s $50.56 billion.
In April, brokerage firm RBC Capital Markets boosted its estimates for Apple’s fiscal second quarter results to adjusted earnings per share of $2.04 and revenue of $53.5 billion, citing improved iPhone data points and mix expectations.
“We think iPhone units have been stable to modestly better than expected and mix continues to remain positive (more ‘Plus’ models),” RBC said in a note to clients. The firm, which has an outperform investment rating on Apple’s shares with a price target of $157, added: “The wild card into the print will be gross margin, where we see two dynamics: better mix from iPhones offset by higher commodity costs.”
BMO Capital Markets, meanwhile, is expecting adjusted earnings per share of $2.06 and revenue of $53.81 billion for the quarter. The firm noted its expectations for iPhone revenue and units are roughly in line with other analysts’ averages, but it is estimating average selling price slightly higher than the Street view. “We believe a higher percentage of iPhone users are mixing up to the top tier, and we expect a bigger move with the new OLED version,” BMO said in a note to clients last week.
Still, BMO said that it believes Apple’s stock “is less about the March results and June guidance, as all eyes are on the product cycle coming later this year.” BMO has an outperform investment rating on the stock with a price target of $160. Apple’s shares closed Friday at $143.65, near the stock’s all-time high of $145.46, which was reached in early April.
Companies: Apple Inc.
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