Earnings $2.16 vs $1.66 last year. Rev. $56B vs 45.6B last year.
Apple earnings are expected to be announced at 4:30 PM ET. The expectations are for earnings to rise to $2.16 vs. $1.66 last year. Revenues are expected to increase to $56 billion from $45.6 billion last year. The market will be paying attention to the iPhone shipments. Estimates are in the 57M range for phone shipments (+30%). What Apple does with it's huge cash hoard is also of interest. Cash was at 178B 3 months ago. JP Morgan expects Apple to expand its capital return program to $155 billion from $130 billion (through December, the company had already returned 103 billion of the 130 Billion pledge) and extend the target date of completion of the program to December 2016 from December 2015. The dividend is currently $1.88 per share.
Technically, the stock is heading into the announcement near the all time high price of $133.60. The high close comes in at $133.00. The price is closing today at the $132.65 level.
Looking at the daily chart above, on a move higher on better news, the pair will look toward the topside trend line connecting most recent highs. That level comes in at around the $142.50 area. Other than that, there really is not a lot to stop the price moving higher - at least from a technical perspective.
Another level that traders (and the market) will be focused on if the earnings train continues to roll on down the tracks is the 1 trillion market capitalization value. With 5,824,747,000 shares outstanding, my "back of a napkin calculation" comes out to a $171.68 per share price. Just an FYI.
On a disappointing number, the price will look toward the 50 day MA at the $127.00 level and the upward trend line at $126.30 (both are moving higher).
Will the Apple of the market's eye, continue to be Apple or will there be disappointment? The stock action today is saying the company can do no wrong. It remains the darling of the market We will see at 4:30 PM
