Apple Inc Q2 Earnings Preview: Revenues Low, Gross Margin High
By Reissa Su | April 16, 2014 10:58 PM EST
Apple Inc. is expected to reveal its Q2 FY 2014 quarterly earnings on April 23 after the final trading call.
A woman looks at the screen of her mobile phone in front of an Apple logo outside its store in downtown Shanghai September 10, 2013.
The company's quarterly results may not be as impressive as revenue and earnings per share figures are expected to be marginally above Apple's guidance.
In January, Apple's iPhone shipments were lower than expected. The March quarter guidance may also prove to be below investor and analyst expectations.
According to Forbes, iPhone and iPad sales may decline "more than normal," but this will be partially countered by Apple's high gross margin. Analysts expected Apple's gross margin to be above the mid-point of guidance.
Revenue guidance for Apple Inc was expected between $42 and $44 billion. The guidance may be higher or lower than $43.6 billion guidance in 2013. Wall Street expected Apple to report $43.6 billion in revenues compared to Forbes' Chuck Jones who expected the company to earn $43.3 billion.
Gross margin guidance for Apple for the March quarter is expected between 37 and 38 percent.
Q2 Earnings Compared to Q1
Apple has released its Q1 FY 2014 earnings and surpassed analysts' and its own expectations with $57.6 billion sales with earnings per share of $14.50.
The Cupertino-based tech giant announced the company sold 51 million iPhones, 26 million iPads and 4.8 million Macs. iPhone and iPad sales for Q1 FY 2014 broke records as Apple claimed they were both quarterly and all-time highs.
Apple continued to enjoy strong demand outside of the U.S. with international sales accounting for 63 percent of Apple's Q1 FY 2014 revenue.
Despite beating the guidance and Wall Street predictions on quarterly revenues, Apple Inc.'s iPhone sales were a disappointment to investors as guidance for the current quarter is between $42 and $44 billion. Apple investors were hoping Q2 earnings will be closer to analyst estimates of $46 billion.
The conference call for Q1 FY 2014 also revealed Apple sales have more than doubled in China. Apple has increasing trend with the help of China Mobile which began offering iPhones to its subscribers in January.
To contact the editor, e-mail:
Most Popular Slideshows
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Kate Middleton's Pregnancy Hearsays: Possible Evidence Revealed [PHOTOS]
- National Ice Cream Day: Most-Ordered Flavors and Toppings by Americans [See Photos]
Join the Conversation
- Malaysian Airlines Flight 17: Air Carrier to Give $5,000 Assistance to Victims’ Families; Bankruptcy Looms as 2 Air Mishaps Would Cost Firm Minimum $80.55 M Compensation
- Foxconn And Pegatron Corp Readies For Apple's iPhone 6 Mass Production This Month
- KFC & McDonald’s Accused of Serving ‘Expired’ Meat to Customers
- Malaysian Airlines Ukraine Tragedy Hits Asian Stock Markets
- New Zealand's Largest Snack Food Company Bought for NZ$700 Million
- iPhone 6 2014 Release Date Very Soon as Apple Orders 120M New iPhones from Foxconn – Report
- Google Nexus 6 on Release Date Will Sport 2K Display Panel & Lower Price Tag – Report
- Motorola Moto G Vs. Xiaomi Mi3 – Low in Price, High -level Features
- FCC Approves Sony Xperia Z3 for U.S. Market