What to expect from Apple's holiday quarter results on Tuesday

Mac OS Ken


One thing is certain for apple ahead lies uncertainty. Tomorrow is went up or reports numbers for the recently ended holiday quarter. We know they're gonna stink. So I guess two things are certain apple CEO, Tim cook wrote a letter to investors on the second of January guiding revenue expectations for the quarter from as low as eighty nine billion dollars to around eighty four billion. The question now is all of the bad news baked in Luke ventures, principal gene Munster argues, it is not an a blog post last week on gene expressed concern that the street is not fully factored in the repercussions of the miss and the fiscal year twenty nineteen estimates. Now, the financial times has creative strategies analysts Ben baharan expressing similar concern saying this isn't a one off thing. I think this is a potentially year long problem if not. Longer. We don't know where the bottom is yet for iphone sales. You know, cook says apple thinks in terms of years and decades not month to month or quarter to quarter the financial times either has not heard that. Or does not care the paper points out that the current quarter includes the Chinese New Year in early February. Traditionally a strong driver of iphone sales, which will test Mr. cooks insistence that apple has a bright future and China despite blaming economic uncertainty there for its revenue shortfall. So if I phone does well naysayers can just write it off to the holiday while if apple does poorly naysayers can say, see gloom, despair and agony on the house of Cupertino. Despite having to adjust guidance at the end of last quarter. At least one analyst is keenly interested in Apple's guidance for the current quarter. Apple insider has Morgan Stanley analyst Katie Huber d calling now a buying opportunity for apple shares for a few reasons quoting a recent note of hers to clients we believe the reason pullback is an attractive entry point given upcoming services launches and shares already pricing an extremely cautious iphone replacement cycle and everage selling price headwinds. So she thinks the bad news from Tim cook sledders already baked in still more bad news is possible. According her note, again, we believe this could trade up on revenue and gross margin guidance range of fifty eight billion dollars and thirty eight percent at the mid point respectively. But she adds guidance meaningfully below these levels would fuel the bear case. I'm reminded of days of not that old when up with issue guidance than regularly crush it knocking it out of the park like Babe Ruth taking batting practice with a little league team. Hubert his interest. In guidance is sensible one wonders, though, how Wall Street will take it. If apple guides conservatively will the street. See apple is fearful if they got up the mystically will the street hearken back to that time a month ago when I had to adjust guidance down by five billion dollars Huber de seems to be hanging her hope on services and guidance. Of course, she's got an overweight rating on apple shares Morgan Stanley's price target on the

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