This information has been prepared by IG, a trading name of IG Australia Pty 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.
Apple earnings are scheduled for 1 November, and the firm is expected to report a 34% rise in headline earnings per share (EPS), to $2.78, while revenue is forecast to rise 17% to $61.4 billion. It has beaten estimates in all of the last eight reports for earnings, and beaten revenue estimates in six of the last eight.
Apple has seen its growth slow in recent years, with an average earnings growth of 5% for the past three years, and sales up by an annual average of 3%. Margins remain solid, with an operating margin of 26.6% and profit margin of 28%. This time around, the company needs to provide guidance on how sales in China are faring following the steep devaluation of the yuan over the past six months. This will make iPhones more expensive, relative to domestic smartphones, potentially hurting sales.
.jpg)
