Apple, Amazon, Alphabet and Facebook Report Earnings Thursday

Along with their sales and EPS figures, keep an eye on the revenue and user numbers for key businesses.
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Grab some popcorn: four of the five most valuable tech companies in the U.S. will all be reporting earnings within 30 minutes of each other on Thursday.

Here are some key numbers to watch as Alphabet  (GOOG) - Get Report, Apple  (AAPL) - Get Report, Amazon.com  (AMZN) - Get Report and Facebook  (FB) - Get Report report on Thursday afternoon and host earnings calls at 4:30 p.m., 5:00 pm., 5:30 p.m. and 6:00 p.m. Eastern Time, respectively. Alphabet, Amazon and Facebook typically report within a few minutes of the market’s close, while Apple usually reports at 4:30. 

(All of the consensus estimates shown below are supplied by FactSet).

Apple

Sales and Earnings Estimates

The consensus is for Apple to report June quarter (fiscal third quarter) revenue of $52.12 billion (down 3% annually) and GAAP EPS of $2.04 (down 6%). For the September quarter -- Apple usually provides sales guidance in its reports, although it declined to do so in April due to uncertainty created by the coronavirus pandemic -- the revenue consensus is at $62.02 billion (down 3%).

Other Numbers to Watch

Revenue by business:

iPhone revenue - consensus of $22.2 billion (down 15%)
iPad revenue - consensus of $4.85 billion (down 3%)
Mac revenue - consensus of $6.03 billion (up 4%)
Wearables, Home and Accessories revenue - consensus of $5.98 billion (up 8%)
Services revenue - consensus of $13.12 billion (up 15%)

Gross margin - consensus of 38% (up from 37.6% a year earlier)
Stock buybacks - totaled $18.5 billion during Apple’s March quarter

Also keep an eye on Apple’s regional sales figures. In the March quarter, Apple’s Americas revenue fell fractionally to $25.5 billion, its Europe revenue rose 9% to $14.3 billion, its “Greater China” revenue fell 7% to $9.5 billion, its Japan revenue fell 6% to $5.21 billion and its “Rest of Asia Pacific” revenue rose 7% to $3.89 billion.

Amazon.com

Sales and Earnings Estimates

The consensus is for Amazon to post Q2 revenue of $81.37 billion (up 28%) and GAAP EPS of $1.48 (down 72% due to major COVID-related expenses). For Q3 -- Amazon usually provides sales and operating income guidance in its reports -- the revenue consensus is at $86.4 billion (up 24%) and GAAP operating income of $3.1 billion (down 2%).

Other Numbers to Watch

Revenue by reporting segment:

North American revenue - consensus of $50.39 billion (up 30%).
International revenue - consensus of $19.67 billion (up 20%).
AWS revenue - consensus of $11.02 billion (up 31%).

Revenue by type:

Online Stores (direct e-commerce) revenue - consensus of $39.86 billion (up 28%)
Third-Party Seller Services revenue - consensus of $15.52 billion (up 30%)
Subscription Services revenue - consensus of $6 billion (up 28%)
Physical Stores revenue (dominated by Whole Foods) - consensus of $4.53 billion (up 5%)
“Other” revenue (dominated by ad sales) - consensus of $4.04 billion (up 35%)

Gross margin - consensus of 40.2% (down from 42.8% a year earlier)
Annual paid unit growth - consensus of 27%
Headcount - stood at 840,400 at the end of Q1 (up 33% annually)

Alphabet

Sales and Earnings Estimates

The consensus is for Alphabet/Google to post Q2 revenue of $37.29 billion (down 4% annually) and GAAP EPS of $7.96 (down 44%). Excluding traffic acquisition costs (TAC - ad revenue-sharing payments to partners), the revenue consensus is at $30.63 billion (down 3%).

Other Numbers to Watch

Revenue by source:
Google Search & Other ad revenue - consensus of $21 billion (no annual comparison available)
YouTube ad revenue - consensus of $3.75 billion (no annual comparison available)
Google Cloud revenue - consensus of $3.04 billion (no annual comparison available)
Google Other revenue (dominated by hardware and Google Play) - consensus of $4.66 billion (no annual comparison available)
Google Network (third-party website/app) ad revenue - consensus of $4.66 billion (down 12%)

Traffic acquisition costs - consensus of $6.67 billion, down from $7.24 billion a year earlier
Stock buybacks - totaled $8.5 billion in Q1
Headcount - stood at 123,048 at the end of Q1 (up 19%)

Facebook

Sales and Earnings Estimates

The consensus is for Facebook to post Q2 revenue of $17.33 billion (up 3% annually) and GAAP EPS of $1.39 (down 30% excluding a year-ago FTC settlement charge).

Other Numbers to Watch

Revenue by type:
Ad revenue - consensus of $16.91 billion (up 2%)
“Other” revenue (covers hardware sales, payments and in-game transactions) - consensus of $301 million (up 15%)

User metrics:
Daily active users (DAUs) for the core Facebook service and Messenger - consensus of 1.75 billion (up 10%)
Monthly active users (MAUs) for core Facebook and Messenger - consensus of 2.62 billion (up 9%)
Total “app family” DAUs - stood at 2.36 billion at the end of Q1 (up 12%)
Total “app family” MAUs - stood at 2.99 billion at the end of Q1 (up 10%)

Headcount - stood at 48,268 at the end of Q1 (up 28% annually)
Stock buybacks - totaled $1.3 billion in Q1

Also keep an eye on any revenue and spending growth guidance Facebook CFO Dave Wehner shares on the earnings call. In April, Wehner forecast Facebook’s GAAP costs and expenses would total between $52 billion and $56 billion in 2020, and that its capex would total $14 billion to $16 billion.