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Inside Apple’s Revenue and Profit Margin Growth

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Analysts expect Apple’s revenues to keep rising

Analysts expect Apple’s (AAPL) (QQQ) revenues to rise 5.5% YoY (year-over-year) to $227.4 billion in fiscal 2017, compared with its revenues of $215.6 billion in fiscal 2016. Apple’s revenue also expected to rise in fiscal 2018 by 17.1% YoY to $266.4 billion. 

Apple’s non-GAAP (generally accepted accounting principles) EPS (earnings per share) could rise 8.3% YoY in 2017 to $9 and 23.6% YoY to $11.12 in fiscal 2018. The newly launched iPhone 8 and iPhone X are expected to drive Apple’s revenue over the next year or so.

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Profit margins

Analysts expect Apple’s GAAP net margin to be 20.8%, with an operating margin of 26.7% in fiscal 2017. The firm recorded a net margin of 21.2%, with an operating margin of 27.8% in fiscal 2016.

Profit margins are, however, expected to remain flat in 2018 and 2019, despite Apple’s rise in revenue. While analysts expect its revenues to rise 17% in 2018, its net margin is expected to rise to 20.9% with an operating margin of 27.4%.

Apple’s operating margin and net margin are expected to be 20.7% and 27.3%, respectively, in 2019, compared with its revenue growth of 1.4% YoY.

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