31 Oct

Will Apple Beat Analyst Estimates in Fiscal 4Q17?

WRITTEN BY Aditya Raghunath

Analysts’ revenue expectations for fiscal 4Q17

Analysts expect US-based (SPY) tech (QQQ) heavyweight Apple (AAPL) to report revenues of $50.8 billion in fiscal 4Q17 (ended September 2017). Wall Street has a high revenue estimate of $53.1 billion and a low estimate of $48.5 billion for 4Q17.

If Apple meets the analyst average revenue estimate of $50.8 billion, it would mean a YoY (year-over-year) rise of 8.4%, compared with its revenues of ~$46.9 billion in 4Q16.

Will Apple Beat Analyst Estimates in Fiscal 4Q17?

Analysts expect non-GAAP (generally accepted accounting principles) EPS (earnings per share) of $1.87, with a high EPS estimate of $2.01 and a low estimate of $1.79 in 4Q17. In 4Q16, Apple posted EPS of $1.5, indicating that the analysts expect its EPS to rise 25% YoY in 4Q17.

Apple has beaten analyst EPS estimates in three of the past four quarters. It reported EPS of $1.67 in 3Q17, which was 6.4% above the analyst estimate of $1.57. The firm also announced EPS of $2.1 in 2Q17, which was 4% above the analyst estimate of $2.02. Its EPS of $3.36 in 1Q17 was 4.7% above estimates, while the firm’s EPS of $1.5 in 4Q16 was 9.6% below the average analyst estimate.

Apple’s expectations

During the firm’s last earnings (3Q17) call, Apple’s management stated that it expects revenues between $49 billion and $52 billion in fiscal 4Q17, with a gross margin between 37.5% and 38%. Apple will be announcing its results on November 2, 2017.

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