Will Apple Stock’s Q2 Results Beat Consensus?


Apple (NASDAQ:AAPL) is expected to publish its Q2 FY’21 results on April 28. We expect Apple’s Revenues to come in at about $76.6 billion, marking an increase of about 31% year-over-year. EPS is likely to stand at about $0.97 per share, an increase of about 51% compared to last year. Our revenue estimates are roughly in line with consensus while our EPS estimate is marginally below consensus. So what are the key trends that are likely to drive Apple’s results? Revenues should see a nice bump year-over-year driven by the higher-priced iPhone 12 handsets – which will see their first full quarter of availability. Higher demand for computing products such as Macs and iPads and stronger growth in the services business is also likely to drive Apple’s top line. Moreover, Apple will see a favorable comparison with Q2 FY’20 when sales were impacted by the first set of Covid-19 related lockdowns. Apple’s margins could also trend higher, driven by a growing mix of services revenues and higher average prices on iPhones, although the supply crunch in the semiconductor market could put some pressure on the company. See our interactive dashboard analysis on Apple’s pre-earnings: What To Expect in Q1? for more details. 

Apple stock has rallied by almost 90% over the last 12 months, driven by growing demand for consumer electronics through Covid-19, anticipation surrounding the 5G iPhones, and Apple’s position as a “safe haven” stock. The stock now trades at roughly 30x forward EPS, which is higher compared to historical levels. It’s very likely that Apple’s Q2 results will determine the near-term trajectory for Apple’s stock.

Apple (NASDAQ:AAPL) had a solid Q1 FY’21, posting record Revenues that topped $110 billion led by the new 5G iPhones. Apple’s Operating Margins also soared by a remarkable 220 basis points year over year to about 30.1%. Can Apple…

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