What To Expect From Apple On Wednesday

Apple
AAPL
Inc. is scheduled to report earnings after Wednesday’s close. The stock hit a record high of $182.94/share in 2022 and is currently trading near $165/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview

The company is expected to report a gain of $1.44/share on $92.94 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.47/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals

Earnings have grown steadily since 2019 which is encouraging considering the overall environment. Earnings are expected to fall by -2% in 2023 vs 2022 and then grow by 10% in 2024 vs 2023. The Return On Equity (ROE) has been over 150% in each of the past 4 quarters which is very impressive!

A Closer Look At The Technicals

Technically, the stock bottomed in January 2023 and is up over 30% since then. The stock is trading -6% below its 52-week high and the bulls want to see it gap higher after earnings are announced. On the other hand, the bears want to see the stock fall sharply after earnings are announced.

Pay Attention To How The Stock Reacts To The News

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

Disclaimer: The stock has been featured in my FindLeadingStocks.com report.