Apple set for vital earnings report after 33% surge off recent lows
Apple has seen its stock surge by a third from the March lows, and investors will be keen to see if the outlook for the rest of the year justifies the current rebound.
When is Apple’s earnings date?
Apple publishes second quarter (Q2) earnings on 30 April.
Apple earnings – what does Wall Street expect?
Apple is expected to report earnings of $2.27 per share, and revenue of $54.2 billion, down 7.5% and 6.3% respectively compared to a year earlier.
As with all companies this earnings season, the focus for Apple will be not on what has happened, but what will happen. The company is expected to report a sharp drop in sales for the quarter, but it is likely that Q3’s outlook will contain a reference to lower sales for the current quarter. The one piece of good news may relate to the next iPhone cycle, and plans for the launch of the new product, even if this is delayed to year-end.
How to trade Apple earnings
The last quarterly update from Apple in January saw the stock rise 3.9%, while the average move on results day is 4.4%. At present, options pricing points to a move of 3.9% for the stock this week.
Apple stock – technical analysis
The descending channel of March has been replaced with an ascending one, as Apple’s stock continues its recovery. The price found support last week at the lower bounce of the channel, rebounding from $268. Further gains target the mid-April high at $295, while above this the top end of the channel above $300 may provide resistance.
The bullish view remains in place unless the price reverses below $268, a vital area of support that was previously resistance during the late March consolidation phase.
Apple’s recovery leads the way
Having gained a third from the March lows, there is a lot of good news being factored into Apple’s stock price. But if it can spin a more positive story about a return to normality later in the year then we may see further upside.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.