3 Key Estimates For Apple's (AAPL) Q2 Earnings Report

Shares of Apple (NASDAQ:AAPL) opened higher on Monday in a sign that investors might expect big things from the tech giant’s quarterly financial results. With that said, investors should take some time to examine what to actually expect from the industry bellwether ahead of its Q2 earnings report on Tuesday.

Apple stock is up nearly 13% over the last year, but shares have dipped 3% during the last month. Some of this recent downturn stems from the fact that investors are increasingly nervous that Apple has become too reliant on the iPhone.

Furthermore, Microsoft (NASDAQ:MSFT) , Amazon (NASDAQ:AMZN) , and Facebook (NASDAQ:FB) all performed well last week. This means that Apple’s second quarter results could face heightened scrutiny. So let’s take a look at what’s in store for Apple.

Our current Zacks Consensus Estimates are calling for Apple’s quarterly revenues to climb by 15.5% to hit $61.1 billion. Meanwhile, the company’s adjusted earnings are projected to surge by over 28% to reach $2.69 per share. Both of these projections should encourage investors ahead of Apple’s second quarter earnings report, but they will also want to understand how some of Apple’s key business segments are projected to perform.

To prepare for this, we can turn to our exclusive non-financial metrics consensus estimate file. The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.

Key Business Segment Estimates

Based on our latest consensus estimates, analysts expect Apple’s total iPhone unit sales to hit 52.94 million. This would mark a 4.3% surge from the 50.76 million iPhones Apple sold in the year-ago period.

Last quarter, Apple sold 77.32 million total iPhone units, which marked a small decline from the 78.29 million the company sold in the year-prior period. Investors should note that the projected sequential downturn is based on strong holiday quarter sales, which also featured its new iPhone X.

Moving on, Apple’s total iPhone revenues are projected to surge nearly 18% from $33.25 billion to $39.22 billion. This big jump helps illuminate just how much impact the higher price of the iPhone X is expected to have on Apple’s top line.

Apple posted total iPhone revenues of $61.58 billion last quarter, which marked a 13.4% climb from the $54.38 billion the company posted in the holiday period a year ago.

Finally, based on our most recent consensus estimates, we expect Apple to report Services revenues of $8.33 billion, which would represent growth of about 18.3% from the $7.04 billion posted in the year-ago quarter.

Apple’s Services unit features iTunes, Apple Music, AppleCare, Apple Pay, and more. Last quarter, revenues climbed roughly 18% to hit $8.47 billion in this category, falling short of our consensus estimate of $8.65 billion.

Make sure to check back here for our full analysis of Apple’s actual results after market close on Tuesday!

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