Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

US tech earnings: Apple

Apple (AAPL) are reporting on Wednesday, 3 May at 6.30am AEST.

Market data
Source: Bloomberg

Current last traded price $143.90.

This will probably be the most widely watched result coming from the US quarterly reporting season underway. Last year Apple reported a decline in revenue from 2015 to 2016, with last total revenue reported at $215.64 billion.

Currently, the Bloomberg average from 37 analysts show 2017 first quarter revenue estimates are expected to come in at $53.02bn, with an estimated total of $233bn for 2017 a rise of $15.6bn from 2016 representing growth of circa 7%. Guidance for the June quarter is expected around $45bn.

Earnings per share expected at $2.02 for the quarter, this will be the catalyst for a move higher in the share price.

As a guide, Apple has a good history of providing an earnings surprise over estimates. At the same time, the underlying share price has bumped higher by an average of 1.5%.

On current pricing of 143.80, this is an immediate move of $2.14 from these levels. Since 2015, there has been a decline into the lows of $90, which is in line with revenue declines during that period. The current price recovery has put the stock back into a primary uptrend.

As the breakout above $135 looks to be consolidating above $140, a surprise in revenue this quarter could extend the price to $155.00. A stop loss would be established at a breakdown below the $140 level.

Late last week some of the largest names in the technology laden NASDAQ reported earnings.
In summary, some very strong numbers came through on revenue growth and earnings per share (EPS).  Alphabet, the public holding company for Google, showed revenue rising 20% from the same period last year with the corresponding rise in share price of 23.5% year on year.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by writer