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What to Expect From Apple's Earnings Report Tomorrow Following iPhone 15 Launch

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Apple will report its earnings results for the fourth quarter of its 2023 fiscal year on Thursday, November 2 at 1:30 p.m. Pacific Time. Apple's CEO Tim Cook and CFO Luca Maestri will discuss the results on a conference call with analysts a half hour later.

iPhone-15-Pro-lineup.jpg

Keep reading for some key things to know about the quarter, including a recap of new products announced, revenue expectations, and more.

New Products During Quarter

The quarter ran from ran from July 2 through September 30, according to Apple's fiscal calendar, and included the following product launches:
  • iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max
  • Apple Watch Series 9 and Apple Watch Ultra 2
  • AirPods Pro with USB-C charging case and EarPods with USB-C connector
Revenue Expectations

Apple has not provided formal revenue guidance since the start of the COVID-19 pandemic, but Wall Street expects the company to report revenue of $89.28 billion in the fourth quarter, according to CNBC. This would be around a 1% decline compared to the $90.15 billion revenue the company reported in the year-ago quarter.

Maestri provided the following commentary on Apple's earnings call last quarter:
We expect our September quarter year-over-year revenue performance to be similar to the June quarter, assuming that the macroeconomic outlook doesn't worsen from what we are projecting today for the current quarter.
Click to expand...
Conference Call

Cook and Maestri will hold a conference call at 2:00 p.m. Pacific Time on Thursday to discuss the company's fourth quarter earnings results. The call should last around one hour and will include a Q&A segment with analysts.

A live audio stream of the conference call will be available on Apple's Investor Relations page, and a recording will be available later in the day for replay.

What's Next

Apple's first quarter of fiscal 2024 began October 1 and runs through December 30. So far during this period, new products announced by Apple include a lower-priced Apple Pencil with a USB-C port, an updated iMac with the M3 chip, and updated 14-inch and 16-inch MacBook Pro models with M3, M3 Pro, and M3 Max chips.

AAPL closed at $173.97 today, down from a 52-week high of $198.23.

Article Link: What to Expect From Apple's Earnings Report Tomorrow Following iPhone 15 Launch
 
Article Link
https://www.macrumors.com/2023/11/01/apple-q4-2023-earnings-preview/
Karma*Police said:
So a company that is trading at 30x earnings with (at best) single digit growth and possibly negative growth next year with no catalyst for growth in sight is undervalued?? How do you figure?

Oh wait, I forgot this is a MacRumors forum. Never mind.
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Karma*Police said:
So a company that is trading at 30x earnings with (at best) single digit growth and possibly negative growth next year with no catalyst for growth in sight is undervalued?? How do you figure?

Oh wait, I forgot this is a MacRumors forum. Never mind.
Click to expand...
No catalyst? What about 73% margin services? India and Southeast Asia? Apple Silicon besting the competition? Spatial Computing Vision Pro? After seeing the mindblowing Vision Pro imagine what the Apple Car will be like? No catalyst? Please
 
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Think|Different said:
$AAPL is wayyyy undervalued. Stock should be hovering around $500, easily.
Click to expand...
FY2023 estimated EPS is $6.06. At $500, that gives AAPL a forward PE of 82.51

FY2024 estimated EPS is $6.52. At $500, that gives AAPL a forward PE of 76.69

FY2025 estimated EPS is $7.15. At $500, that gives AAPL a forward PE of 69.93

They're also expected to post their 4th consecutive quarterly revenue decline.

Apple should be around $500? Maybe when they can show actualy growth again and they can get FY2024 EPS close to $15.00


www.wsj.com

AAPL | Apple Inc. Stock Price & News - WSJ

View the latest Apple Inc. (AAPL) stock price, news, historical charts, analyst ratings and financial information from WSJ.
www.wsj.com www.wsj.com

AAPL_EPS.png
 
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DelayedGratificationGene said:
No catalyst? What about 73% margin services? India and Southeast Asia? Apple Silicon besting the competition? Spatial Computing Vision Pro? After seeing the mindblowing Vision Pro imagine what the Apple Car will be like? No catalyst? Please
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How will any of those things help them to return to revenue growth and massively boost their foward EPS by more than double current forward estimates?

For Apple to be at $500 and with their current foward PE of 28.71, Apple would have to bring in $17.41 in earnings per share for FY2023. That's almost 3x their current FY2023 estimate.
 
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bobdobalina said:
You think the fair value would be 80 times earnings? Apple's PE ratio is currently 28. I don't think it's undervalued.
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If you think PE ratio is the only driver of valuation then I have a small relatively unknown company called Tesla you should look at.

Tech stocks, which is what the majority of what gives Tesla its value, operate outside the guidance of traditional PE ratios. Look at AMD and Nvidia too. Their growth is not in widgets so their value is not in just the current price per earnings. Its in part based on a portfolio of patents and the growth of that technology. It's much more multifaceted.
 
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I just do not see that 'massive growth product' in their pipeline. Except for services, perhaps.
The stocks relative stability even in this macro environment is very impressive though.

AAPL.jpeg
 
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surfzen21 said:
If you think PE ratio is the only driver of valuation then I have a small relatively unknown company called Tesla you should look at.

Tech stocks, which is what the majority of what gives Tesla its value, operate outside the guidance of traditional PE ratios. Look at AMD and Nvidia too. Their growth is not in widgets so their value is not in just the current price per earnings. Its in part based on a portfolio of patents and the growth of that technology. It's much more multifaceted.
Click to expand...
You think Apple should have a higher PE than AMD, NVDA, and TSLA when historically AAPL's been under 30? And when Apple continues to report sequential sales decline?

AMD has a FY2024 PE of $108 ÷ $3.77 estimated FY2024 EPS = 28.65
NVDA has a FY2024 PE of $423 ÷ $10.73 estimated FY2024 EPS = 39.42
TSLA has a FY2024 PE of $205.66 ÷ $3.94 estimated FY2024 EPS = 52.20
AAPL has a estimated FY2024 EPS of $6.52. At $500, that gives AAPL a PE of 76.69
 
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DelayedGratificationGene said:
No catalyst? What about 73% margin services? India and Southeast Asia? Apple Silicon besting the competition? Spatial Computing Vision Pro? After seeing the mindblowing Vision Pro imagine what the Apple Car will be like? No catalyst? Please
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I definitely see future catalysts for growth, but others clearly don’t. Remember when Icahn sold his 52m shares back in 2016 because he was worried about China, and O’Leary sold his in 2018 because Apple stopped reporting iPhone unit sales? If you focus on near term concerns you can really miss out on the big picture. I don’t think analysts are considering Vision Pro at this point, but that will change next year. I think demand will be through the roof — just not sure how many they can build.
 
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DelayedGratificationGene said:
No catalyst? What about 73% margin services? India and Southeast Asia? Apple Silicon besting the competition? Spatial Computing Vision Pro? After seeing the mindblowing Vision Pro imagine what the Apple Car will be like? No catalyst? Please
Click to expand...
What does margin have to do with growth? SE Asia is tapped out and China is going through some major economic issues in case you haven’t heard. India is dominated by Android cos very few people can afford iPhones and that situation isn’t going to change anytime soon.

As for that Oculus-like device, not many people can afford to spend $3700+ on mom-essential goods, especially one that’s unproven. As for that ever-elusive Apple car… the fact that you’re banking on that as a catalyst should tell you how out of touch you are with reality.
 
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Tim will say we need to please our investors and up the price of all new products next year 😂😆
 
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