Apple
- Apple is scheduled to report its fiscal second-quarter results on Tuesday afternoon.
- Analysts are essentially split between bullish and neutral ahead of the report, with big questions lingering over iPhones sales and what kind of growth its new services could bring.
- Shares are still 12% below their all-time high after staging a 45% rally since their December low.
- Watch Apple trade live.
Apple analysts have no shortage of questions and concerns ahead of the tech giant's highly anticipated fiscal second-quarter report set for release on Tuesday afternoon.
Weakened iPhone demand? Perhaps it's already priced into the stock. Unhealthy iPhone mix? Perhaps it's improving. Softness in the Chinese economy impacting sales? Hopefully we'll get updates.
Those were some of the biggest themes and debates on analysts' minds ahead of results, which are expected to reflect a drop in profits and sales from Q1.
"Off low expectations, results/guide should be fine," UBS analysts led by Timothy Arcuri wrote to clients last week, adding the company's iPhone mix "remains challenging," but that foreign-exchange headwinds should start to ease in June.
They said: "The big unknown remains China and 3rd party gov't data did not show much iPhone improvement."
Apple's services segment will be another closely watched point, particularly after the company's special event last month fell flat with investors.
Some analysts suggested there was too much optimism priced into services' growth potential.
"Deterioration in optimism around Services could prompt us to get more positive on AAPL, while signs of material defections by users to Android or elevated regulatory scrutiny of the App Store could prompt us to get more negative," KeyBanc Capital Markets analysts said in a note to clients last week.
Wall Street has grown increasingly cautious on Apple shares, and as of Monday the number of those bullish and neutral were nearly split. Of those analysts polled by Bloomberg, 22 say "buy," 21 say "hold," and three say "sell."
According to data compiled by Bloomberg, Apple is expected to post adjusted earnings of $2.37 a share on $57.5 billion in revenue. Last quarter, Apple reported earnings of $4.18 a share on revenue of $84.3 billion.
Apple shares have jumped 45% since their December low, but still trade 12% below their all-time high last of $233.47 a share that was reached in October.
Here's a snapshot of what else Wall Street analysts are saying: