Apple is set to report its fourth quarter earnings after the bell on Wednesday.
Here's what Wall Street is expecting, according to Refinitiv consensus estimates:
- Earnings per share: $2.84
- Revenue: $62.99 billion
- iPhone revenue: $32.42 billion
- Services revenue: $12.15 billion
- Q1 revenue guidance: $86.92 billion
Apple's forecast for next quarter will receive close attention. Apple's holiday quarter is its most important of the year, and last year it reported $84.3 billion in revenue, missing its own projections of $89 billion to $93 billion.
If Apple gives a range of holiday quarter revenue estimates beating the $84.3 billion mark, as analysts are predicting, then the company is signaling a return to annualized growth. Apple's holiday quarter revenue peaked in the quarter that ended December 2017 with revenue of $88.29 billion.
"As per usual, Apple's Q4 results are not of particular importance, but guidance is," Bernstein analyst Toni Sacconaghi said in a note last week.
Wednesday's earnings will also show the first impact of Trump administration tariffs on Apple's balance sheet. Apple's AirPods, Apple Watch and HomePod became subject to a 15% tariff in September. Other critical Apple products, like the iPhone and iPad, will become subject to tariffs in December, if Apple does not receive an exemption from the Trump administration.
Apple CEO Tim Cook could use Wednesday's earnings report to repeat his points that tariffs show up as a tax on the consumer, as well as how the company is navigating the China trade war.
Any new data on Apple's business in China will also be scrutinized. In the quarter that ended in June, Apple made 17% of its revenue from Greater China, which includes Taiwan and Hong Kong. But Apple also does the vast majority of its iPhone manufacturing in China, which means that its stock is sensitive to most developments in the U.S.-China trade war.
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