Are You Expecting This from Apple?

Apple (Nasdaq: AAPL  ) is expected to report Q2 earnings around April 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Apple's revenues will grow 8.6% and EPS will compress -18.2%.

The average estimate for revenue is $42.57 billion. On the bottom line, the average EPS estimate is $10.06.

Revenue details
Last quarter, Apple logged revenue of $54.51 billion. GAAP reported sales were 18% higher than the prior-year quarter's $46.33 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $13.81. GAAP EPS of $13.81 for Q1 were 0.4% lower than the prior-year quarter's $13.87 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 38.6%, 610 basis points worse than the prior-year quarter. Operating margin was 31.6%, 580 basis points worse than the prior-year quarter. Net margin was 24.0%, 420 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $180.25 billion. The average EPS estimate is $43.55.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 27,583 members out of 29,879 rating the stock outperform, and 2,296 members rating it underperform. Among 5,506 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 5,258 give Apple a green thumbs-up, and 248 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Apple is outperform, with an average price target of $734.63.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On April 19, 2013, at 11:03 AM, Teo123 wrote:

    Sadly, AAPL has fallen out of favor. It's crazy. I'll wait till after earnings before buying more.

  • Report this Comment On April 20, 2013, at 6:29 PM, Jjkiam wrote:

    Yes as a long time shareholder and someone who is extremely frustrated with current management's incredibly destructive silence about their share price; I have now concluded that Apple will miss the consensus of 10.13 on 2sday. The only good news will be that the cash equivalent balance will be at 150b. This will then lead to addtl selling down to possibly 350 or lower! At some point in the near future the BOD will then have to allocate major support in the form of increased dividends and major stock buy backs( at least 30 + b)! If this is then followed by announcements of new carriers(ie CM and/or NTT Docomo) and a major announcement at the WWDC in June, the stock will begin a major recovery! If this doesn't happen then the stock goes down even further! TC are you thinking about this?

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