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What Analysts Expect for Apple’s Q1 2019 Earnings

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Jan. 25 2019, Published 12:17 p.m. ET

Apple’s first-quarter earnings

Previously, we saw that Apple (AAPL) stock’s underperformance in the last quarter has continued into this month. Let’s now look at Apple’s earnings trends and analysts’ estimates for its upcoming earnings release.

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Apple’s recent earnings trends

Apple’s earnings have been strongly positive for the last two years, with its adjusted EPS growing during the last eight quarters and beating analysts’ estimates in the last ten. In the fourth quarter of its fiscal 2018, Apple’s adjusted EPS grew robustly, by 40.6% YoY (year-over-year) to $2.91.

Estimates for Q1 2019

In the first quarter of fiscal 2019, Reuters-surveyed analysts expect Apple’s adjusted EPS to rise 7.2% YoY to $4.17 from $3.89. Before turning negative in the quarter ended December 31, AAPL stock outperformed the broader market and most of its peers by a wide margin in the quarter prior (ended September 30). In that quarter, AAPL rose 21.9%, while the S&P 500 and NASDAQ Composite rose 7.2% and 7.1%. Tech companies Microsoft (MSFT), NVIDIA (NVDA), Alphabet (GOOG), Amazon (AMZN), and Oracle (ORCL) rose 16.0%, 18.6%, 6.9%, 17.8%, and 17.0%, respectively, whereas Facebook (FB), Intel (INTC), and Netflix (NFLX) fell ~15.4%, 4.9%, and 4.4%, respectively. Next, we’ll look at analysts’ recommendations for Apple stock before the company’s first-quarter earnings release.

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