It is expected that Apple will announce its quarterly earnings this Wednesday. This has triggered a fight between different analysts about whether this battleground technology stock will disappoint again in terms of its earnings or will it surprise with its earnings.
Analysts hardly expect anything extraordinary from Apple. It is expected that the company will earn $10.17 per share based on the average estimates from S&P Capital IQ. If we compare it to the same period of last year’s, this marks a 0.8% increase. This is just the kind of growth that transformed Apple into a highly desirable stock.
Also, the analysts are now developing a consensus over the issue that whether the average estimate of $10.17 per share for the quarter is too high or too low. Since Apple holds a market value of $471b, so the stakes for the technology sector become even more important. This makes it the most worthy US company having a predominant impact on the market indexes.
Talking to his clients, Abhey Lamba, one of the financial advisor at Mizuho Securities, says “The case for earnings coming in light is straightforward: Weaker than expected iPhone sales.” He also predicts that the iPhone shipment in this quarter will be around 35m, and will miss the previous consensus that estimated a shipment of 37m. According to him, this shortfall will generate quarterly earnings of $9.75-$10.00 per share.
John Bright, Director and Senior Research Analyst at Avondale Partners thinks that Apple is on the edge of denying the consensus estimates. He expects its earnings to be better than the expected iPhone sales. He also predicts that the company would earn $10.32 per share in the second fiscal quarter that is impressively higher than the estimates.
The company investors are desperate for a good news. FY 14 Second Quarter Results Conference Call is going to take place on Wednesday, April 23, 2014, 2:00 p.m. PDT/5:00 p.m. EDT via dial-in number for press (844) 616-0064 (toll-free) or (719) 867-1888 with confirmation code 806276. The company’s shares are already down by 6% this year, also lagging behind the Standard & Poor’s 500’s more than 1.1% gain.