Analysts expect AAPL’s earnings for the third quarter of 2022 to experience a plateau of growth


A day before the Cupertino company reports AAPL earnings for the third quarter of 2022, analysts expect to see an end to the company’s pandemic-fueled growth.

As per usual, the company did not issue any guidance for the fiscal quarter, due to continued supply disruptions as China continues its COVID Zero policy…

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Apple’s earnings lately have been a battle between supply and demand. On the supply side, the Cupertino company has faced a whole host of product production disruptions due to COVID lockdowns. On the one hand, demand has increased due to a combination of greater spending on technology during the pandemic and a whole new generation of Apple Silicon Macs.

So far demand has triumphed, as the company has enjoyed a record-breaking run of seasons. Back in April, for example, Apple reported revenue of $97.3 billion, up 9% year-over-year. Chief Financial Officer Luca Maestri said at the time that the company had seen revenue records in almost all product categories.

We are very pleased with our record business results for the March quarter, as we set record services revenue and March quarter revenue records for iPhone, Mac, wearables and home and accessories.

Apple has reported revenue growth in each of the past 10 quarters, starting in the second quarter of 2019.

AAPL Q3 2022 Earnings Will Plateau – Analysts

Yahoo Finance He has the usual roundup of analyst forecasts. The range of expected revenue for the third fiscal quarter is huge, from $79.26 billion on the low end to $88.41 billion on the high end.

However, the average across 26 analysts is $82.81 billion — which represents only 1% annual growth, and is basically flat.

The site says that the strength of the dollar and the loss of Russian sales are other factors influencing.

Apple expects supply chain disruptions from the coronavirus and industry-wide silicon shortages to hurt its first line by $4-8 billion, much higher than it saw in the second quarter of fiscal 2022. Unfavorable foreign currency is also expected to hurt with revenue of 300 basis points (bps). The absence of Russian revenue will hurt the first line by 150 basis points [1.5%].

A strong dollar means that Apple must either increase product prices in other countries, or affect its margins.

The fact that Apple publicly discounted iPhones in China — a first for the company — just two days before the earnings call suggests that it may try to generate some iPhone growth news to make up for its lack in the prior quarter.

Search for alpha It is noted that someone is betting heavily on Apple’s share price to fall after tomorrow’s earnings announcement, and that technical factors support this dispute.

Shares traded as if all was well, and nothing could go wrong when the company reports results […]

A trader is betting that Apple will trade lower results next. On July 25, the open interest for the July 29, $140 put rose by about 16,600 contracts. [This] It could mean that the stock will be trading below $139.55 by the expiration date this weekend. Given the short time frame of this trade, this is a reasonably large bet, with a trader paying around $800,000 in premiums to make a bearish bet. […]

Apple’s technical chart indicates that stocks could decline after hitting the technical resistance at $156.65. The RSI has been trending lower for some time, making a series of lower highs and lower lows. This may indicate that the momentum is very bearish. If the stock falls below the support at $152, there is a possibility that the stock could drop back to $139.60.

If AAPL’s earnings fall short of expectations, it could mean that traders are concerned about the tech sector as a whole, sending the Nasdaq lower.

Photo: Adam Nowakowski/Unsplash

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