Apple's upcoming third fiscal quarter results are expected to be issued this week, but before that, like every earnings call, comes expectations from analysts. The call comes from Wall Street and represents what these analysts could expect from the iPhone maker.
Apple Q3 2023 Expectations to be Released on August
According to Apple Insider, the company has reportedly confirmed that it would release its third fiscal quarter results on August 3. As expected, the event will still be led and hosted by the company's CEO, Tim Cook, joined by CFO Luca Maestri.
It was reported that the results of Apple's earnings call are expected to be released around 4:30 p.m. ET while the call would start at around 5 p.m. ET. As a tradition with Apple regarding financial results, since 2020, the company has declined to offer firm numbers regarding its forward-looking guidance.
Previous Q2 Earnings Call Saw Apple CFO Luca Maestri Shed Details to Investors
Despite this, during the company's previous Q2 earnings call, CFO Luca Maestri reportedly offered some details for investors to consider, The Street reported. The CFO noted that quarter revenue was expected to trend just like its Q2 year-on-year numbers as long as there won't be a decline in the macroeconomic outlook.
It was also reported that foreign exchange was predicted to remain at what was noted to be a headwind at 400 basis points. However, the CFO highlighted how Services should still see similar growth to what it experienced during the quarter in March.
Apple Q3 Gross Margin Is Expected to Remain at About 44% to 44.5%
So far, Luca Maestri reported that the Q3 gross margin should remain at about 44% to 44.5% while its operating costs would sit at about $13.6 billion to $13.8 billion. It comes as the stronger gross margin was attributed to what the CFO described as a "flat foreign exchange rate."
Apple Insider reported that the third quarter typically results in the lowest of the company's annual cycle results. That means the company reportedly earned less during this quarter than in any other quarter.
Read Also : Apple Parental Controls 'Screen Time' Bug Confirmed: Children Can Still Get Unlimited Access
Apple Q3 2022 Report Saw a Slight Increase in iPhone and Services Revenue
Despite this, Apple continues to look at improvements with regard to the quarter's results in comparison to the reports a year before. As seen in the company's Q3 2022 report, the company only saw a 2% year-over-year revenue increase to $83 billion.
That came as its iPhone revenue was slightly up at $40.6 billion, with iPad revenue slightly sitting down at $7.22 billion. Its Mac revenue was also reportedly down to just $7.38 billion, with its Wearables, Home, and Accessories also seeing a slight reduction to $8.08 billion while its Services saw growth at $19.6 billion.
Morgan Stanley thinks that Apple would have an as-expected June quarter, with revenue trending similarly year-on-year to Q2, which means an earnings per share of around $1.19 and $81.7 billion in sales.
Using figures from Yahoo Finance, Wall Street believes that based on a compilation of reports from 25 analysts, Apple's revenue will likely be around $90.29 billion. The total range will reportedly be from a low of $82.81 billion to a high of $97.17 billion.
