This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple Earnings: The Mother of All Reports (Update 2)

Updated from 11:12 a.m. EST to provide portfolio manager comments in the third paragraph.

NEW YORK ( TheStreet) -- It's the mother of all earnings reports. Apple's (AAPL - Get Report) slated to report earnings and guidance after the close of trading, and given the malaise towards the iPhone maker lately, Apple will need to show something extraordinary to excite investors and regain the aura that's surrounded the company in the past.

There have been countless reports over the past few months that Apple's seeing slowing demand for its products, whether it's the all-important iPhone, or concerns over the iPad.

Expectations have been lowered going into the report, and Ironfire Capital's Eric Jackson thinks Apple will meet the expectations, and "that will cause a lot of hand-wringing this afternoon about whether the law of large numbers is kicking in." Going a little further out, Jackson believes shares will be higher, as people start to look toward the rest of 2013. Jackson owns shares in Apple and is a RealMoney contributor.

Judging by recent smartphone numbers from Verizon (VZ - Get Report) and AT&T (T - Get Report), iPhone activations are less of a concern than they were, which should be a positive for Apple this quarter. Verizon activated 6.2 million iPhones in its most recent quarter, with half of them iPhone 5s. AT&T said it activated 10.2 million smartphones, with most analysts believing that around 75% of them were iPhones.

Last quarter, the iPhone accounted for nearly 50% of Apple's revenue. The Cupertino, Calif.-based firm generated $36 billion in overall sales during its fiscal fourth quarter.

Analysts polled by Thomson Reuters are looking for earnings of $13.47 a share on $54.7 billion in revenue. The most important number in the earnings release, in my opinion, is gross margin.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.60 0.00%
QCOM $57.79 0.00%
T $33.30 0.00%
VZ $44.30 0.00%
FB $94.26 0.00%


Chart of I:DJI
DOW 17,131.86 +47.37 0.28%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,838.6430 +8.1730 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs