Apple (NASDAQ: APPL) has been one of the most profitable companies in the past few years. With the popularity of the iPhone smartphone devices, iPad tablets, Macbook computers, and not to mention the App Store and iTunes — specifically iTunes, which Apple anticipated would simply “break even” but reportedly nets Apple $2 billion a year — Apple has a number of devices and software that have helped the company become one of the biggest in the world over the past 10 years.
However, for the first time in a decade, reports indicate that Apple’s Q2 2013 earnings per share will fall year over year. What can we expect from first quarter earnings report from Apple? Here are five things we can expect from Apple’s Q2 2013.
We’ll be updating this post with more news about Apple’s Q2 2013 earnings report, so stay tuned.
1. Apple Will Post Record Revenue Numbers
According to Fortune, Apple will post record revenue figures in its Q2 2013 earnings report. Apple posted earnings of $41 billion in Q1 2013, and Wall Street is anticipating that Apple will report that it’s made $43 billion in Q2 2013. While the $2 billion increase may not be considered much for Apple, remember that the company introduced no new major software or devices this past quarter (yes, they did unveil a new 128GB iPad, but not many people will actually buy the $799.00 device) and is simply building off of the release of the iPhone 5 in September 2012 and the iPad Mini and iPad 4 last October.
2. But Apple Will Also Report a Drop in the Stock’s Earnings Per Share
However, Apple will apparently be reporting a drop in the stock’s earning per share (EPS), which calculates the earnings per each individual share of Apple’s stock. In Q2 2012, Apple’s EPS was $12.30. Most analysts are anticipating that, a year later, Apple’s EPS will fall to $9.85.
3. It Will be the First Time Apple Will Report a Drop in EPS in 10 Years
Amazingly, this earnings report will be the first time Apple will be posting a drop in its earnings per share in a decade. According toFortune, most analysts, even those who are typically more bullish about Apple’s stock, predict the drop.
4. There’s “Nowhere to Go But Up”
Fortune reports that, even though the EPS will be falling in Q2 2013 for Apple, the folks at Wall Street have already taken this information into account and the stock price has already adjusted. “The smart money has been pouring back into the company for the past three weeks,” Fortune wrote. “Wall Street seems to be betting that in the next six to 12 months, those numbers have nowhere to go but up.”
5. And There’s More Good News For Apple
As we previously wrote, Business Insider found a pretty interesting statistic last week in Apple’s stock. They noticed that a few days ago, Apple stock price finished the day above its 50-day moving average for the first time since October 2012. A moving average is a statistic monitored by traders and technical analysts, and hints at which way a company’s stock could be moving. Apple’s stock price closing above the 50-day moving average is definitely a good sign and implies that the company’s stock may be going up.