Apple’s Q4 earnings on Monday will produce the usual market excitement associated with the regular chance to get a look at the performance of the pre-eminent smartphone manufacturer.
Adjusted earnings per share are forecast to rise by 10% over the year, reaching $1.30, while sales are expected to be up 6.4% over twelve months, to $39.88 billion. Short interest in the company’s shares has been declining steadily since its peak in July, and now stands at 1.63% of the available float.
In July, Apple indicated that revenue would be between $37 billion and $40 billion, while margins would be between 37% and 38%, which suggests an earnings per share range of $1.11 to $1.31. In a particularly encouraging sign, earnings estimates from analysts have been revised higher in recent weeks, with some expecting a figure as high as $1.36 per share.
Morgan Stanley recently suggested that the company would have shipped 38 million iPhones during the quarter in question, but that the new iPhone models would mean shipments in coming quarters are likely to increase, while the upgrade cycle is forecast to last ‘well into 2016’. Market share is also on the increase in the US, China and Australia, boosting shipments. Shipments in China are expected to rise as well, thanks to the delayed launch in that country, where regulatory approval has been slower in coming.