What You Should Know Ahead of Apple’s Earnings This Thursday

KEY TAKEAWAYS

• Apple is anticipated to publish its first quarterly revenue gain in a year and its highest earnings per share in two years on Thursday.
• Sales of Apple’s iPhone 15, which was released in September, could assist to drive earnings growth for the corporation.
• The corporation may face an antitrust lawsuit in the coming months as a result of charges of anticompetitive conduct surrounding the iPhone.

As Apple Inc. (AAPL) prepares to report its first-quarter fiscal 2024 earnings after the market closes on Thursday, the company could post its first year-over-year (YOY) quarterly revenue gain in a year and its best earnings per share (EPS) in two years, boosted by rising iPhone revenue and services sales.

Analysts expect Apple to report net income of $32.56 billion, the most since the first quarter of fiscal 2022, and an 11% year-over-year increase in EPS to $2.09 this quarter. Revenue is forecast to rise by less than 1%, its first increase since the fourth quarter of fiscal 2022.

	Analyst Estimates for Q1 FY2024	Q4 FY2023	Q1 FY2023
Revenue	$117.97 billion	$89.5 billion	$117.15 billion
(Diluted) Earnings Per Share	$2.09	$1.46	$1.88
Net Income	$32.56 billion	$22.96 billion	$30 billion

Key Metric: iPhone Sales

The iPhone has long been a crucial revenue engine for Apple. iPhones outsell iPads, Apple Watches, and even the company’s Mac goods. Following the release of the current generation, the iPhone 15 series, in September, investors will keenly monitor the impact of this new line on Apple’s iPhone sales in the first quarter of fiscal year.

iPhone sales are likely to hit $68.4 billion, the company’s second-highest quarterly total in history. This would represent a 4% year-over-year increase, led by early sales of iPhone 15 goods. However, other experts have warned that iPhone sales may not be able to maintain this speed until 2024, citing a Bloomberg customer poll that found a preference for holding on to phones longer without upgrading to the latest models.

Business Spotlight

Apple, one of the world’s most valuable firms, is off to a mixed start in 2024. Apple’s new spatial computing gear, Apple Vision Pro, will be available on February 2, launching the corporation into a whole new product category.

However, the business began the year facing a number of legal challenges, including a ban on U.S. sales of some Apple Watches with blood oxygen sensors as it attempts to appeal a patent infringement lawsuit. The US Justice Department may possibly be preparing to file a significant antitrust case against Apple for alleged anticompetitive tactics with the iPhone.

While Apple shares have dipped in the previous week, they are still up roughly 28% year to date as of Wednesday’s trade end.