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iPhone Sales, Services Revenue, & Other Key Estimates For Apple's Q3
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Shares of Apple (AAPL - Free Report) slipped Monday after dipping late last week as investors assess what to make of AAPL stock and its upcoming financial results after Facebook and Twitter’s massive selloffs. So let’s take a look at what investors should expect from some of Apple’s biggest business units, including iPhone and Services, to see if there is real cause for concern.
Apple has actively expanded beyond the iPhone over the last few years, not only due to its outsized reliance on its flagship product but also because its Mac and iPad divisions have slowed. CEO Tim Cook’s company now aims to compete as a product maker and a services firm. Apple has expanded its music streaming offerings to take on Spotify (SPOT - Free Report) , while also preparing to battle Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) , Hulu, and soon enough Disney (DIS - Free Report) with its own streaming TV platform.
Apple’s fiscal third-quarter revenues are projected to climb by over 15% to hit $52.37 billion, based on our current Zacks Consensus Estimate. At the other end of the income statement, Apple is expected to see its adjusted Q3 earnings surge by nearly 30% to hit $2.17 per share.
These top and bottom line estimates are beneficial, yet we also need to know how Apple’s individual business segments are projected to perform since they might dictate AAPL’s stock price movement following its quarterly earnings release Tuesday and beyond. Luckily, we can turn to our exclusive non-financial metrics consensus estimate file to prepare.
The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
iPhone
Based on our latest NFM estimates, Apple’s total iPhone unit sales are projected to hit 41.298 million, which would mark a less than 1% climb from the 41.026 million smartphones Apple sold in the year-ago quarter. iPhone unit sales climbed by approximately 3% during Apple’s fiscal Q2 to touch 52.217 million.
Moving on, Apple’s total iPhone revenues are projected to surge over 15% from $24.846 billion to $28.647 billion. Investors will note the significant difference between total expected unit sales growth and iPhone revenue expansion, which illuminates just how much the high-priced iPhone X has helped Apple. Last quarter, iPhone revenues hit $38.032 billion, which represented a 14% climb.
Services
Lastly, Wall Street will also focus on Apple’s growing Services business that features iTunes, AppleCare, Apple Pay, and Apple Music. Apple’s Services unit is projected to see its revenues climb by nearly 29% from $7.266 billion to reach $9.344 billion.
Apple saw its Services business revenues soar by 31% last quarter to hit $9.190 billion, which outpaced iPhone, iPad, and Mac’s combined growth.
Make sure to check back here for our full analysis of Apple’s actual results after market close on Tuesday!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
iPhone Sales, Services Revenue, & Other Key Estimates For Apple's Q3
Shares of Apple (AAPL - Free Report) slipped Monday after dipping late last week as investors assess what to make of AAPL stock and its upcoming financial results after Facebook and Twitter’s massive selloffs. So let’s take a look at what investors should expect from some of Apple’s biggest business units, including iPhone and Services, to see if there is real cause for concern.
Apple has actively expanded beyond the iPhone over the last few years, not only due to its outsized reliance on its flagship product but also because its Mac and iPad divisions have slowed. CEO Tim Cook’s company now aims to compete as a product maker and a services firm. Apple has expanded its music streaming offerings to take on Spotify (SPOT - Free Report) , while also preparing to battle Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) , Hulu, and soon enough Disney (DIS - Free Report) with its own streaming TV platform.
Apple’s fiscal third-quarter revenues are projected to climb by over 15% to hit $52.37 billion, based on our current Zacks Consensus Estimate. At the other end of the income statement, Apple is expected to see its adjusted Q3 earnings surge by nearly 30% to hit $2.17 per share.
These top and bottom line estimates are beneficial, yet we also need to know how Apple’s individual business segments are projected to perform since they might dictate AAPL’s stock price movement following its quarterly earnings release Tuesday and beyond. Luckily, we can turn to our exclusive non-financial metrics consensus estimate file to prepare.
The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
iPhone
Based on our latest NFM estimates, Apple’s total iPhone unit sales are projected to hit 41.298 million, which would mark a less than 1% climb from the 41.026 million smartphones Apple sold in the year-ago quarter. iPhone unit sales climbed by approximately 3% during Apple’s fiscal Q2 to touch 52.217 million.
Moving on, Apple’s total iPhone revenues are projected to surge over 15% from $24.846 billion to $28.647 billion. Investors will note the significant difference between total expected unit sales growth and iPhone revenue expansion, which illuminates just how much the high-priced iPhone X has helped Apple. Last quarter, iPhone revenues hit $38.032 billion, which represented a 14% climb.
Services
Lastly, Wall Street will also focus on Apple’s growing Services business that features iTunes, AppleCare, Apple Pay, and Apple Music. Apple’s Services unit is projected to see its revenues climb by nearly 29% from $7.266 billion to reach $9.344 billion.
Apple saw its Services business revenues soar by 31% last quarter to hit $9.190 billion, which outpaced iPhone, iPad, and Mac’s combined growth.
Make sure to check back here for our full analysis of Apple’s actual results after market close on Tuesday!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>