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.

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