Apple is poised to deliver its fiscal third-quarter earnings report after the market closes today. Analysts, according to LSEG data, are projecting earnings per share of $1.89 on revenue of $108.65 billion. This report arrives as Apple’s stock hovers near an all-time high, showcasing a remarkable 24% year-to-date gain as of Wednesday’s close, outperforming many of its megacap peers.
The anticipated revenue figures represent a significant 16% increase compared to the $94 billion recorded in the same quarter last year. This growth trajectory is particularly noteworthy given the prevailing industry headwinds. Apple is navigating a global memory chip shortage, a situation CEO Tim Cook has described with stark imagery as a “hundred-year flood.” This, coupled with a fierce competition for chip manufacturing capacity, has already compelled the company to implement price hikes on its Mac and iPad product lines. While direct confirmation regarding iPhone price adjustments remains elusive, many market watchers are anticipating potential increases later this year.
More strategically, Apple is reportedly gearing up for a significant AI play, with a redesigned Siri utilizing Google’s underlying technology slated for a September unveiling alongside new iPhone hardware. This move is viewed as a critical juncture for the tech giant, as investors have voiced concerns about Apple’s perceived lag in the burgeoning artificial intelligence landscape. If these quarterly expectations are met, it would mark the third consecutive quarter of year-over-year revenue growth exceeding 15%, underscoring a sustained period of expansion.
The upcoming earnings call will also mark a transition in leadership. It will be Tim Cook’s final earnings briefing as Apple’s chief executive before he passes the baton to John Ternus on September 1st. Ternus, a seasoned Apple executive with 25 years at the company and the current head of hardware, made limited remarks during the previous earnings call following the CEO transition announcement in April. Investors are now keen to gain deeper insights from his upcoming tenure.
The full earnings conference call is scheduled to commence at 5 p.m. ET.
CNBC’s reporting team is covering Apple’s earnings from key locations in San Francisco and Englewood Cliffs, New Jersey.
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