Skip to main content

NEW YORK (TheStreet) --Apple (AAPL) - Get Apple Inc. Report will report its fiscal 2016 fourth-quarter earnings after the market close on Tuesday. The results are coming on the heels of the tech titan's stock gaining nearly 20% in the past three months. CNBC's Josh Lipton reported on what analysts are anticipating from Apple tomorrow.

"The Street is going to be on the lookout for a few big themes. One, Apple will give guidance for December quarter and that will be the first real read on demand for the new iPhone 7 models. Investors want to know if the 7 can return the iPhone franchise to growth," Lipton said on "Squawk Alley" this morning.

There are currently 275 million active iPhone users with models older than the iPhone 6, according to Piper Jaffray's Gene Munster, and analysts will examine how many of those will upgrade, and which model they upgrade to.

"Samsung's (SSNLF) blunder with its Galaxy Note 7 could provide a tailwind for Apple can Cook capitalize on Samsung's pain and gain share in the super-premium smartphone category," Lipton added.

Additionally, there will be substantial interest in Apple's China business. The company reported a decline in revenue of 33% year-over-year last quarter.

"CEO Tim Cook pinned that pressure on slower economic growth and currency headwinds, but bulls want reassurance that there isn't something structurally wrong with the business," Lipton noted.

Apple's services will also be examined as part of the results due out tomorrow.

Scroll to Continue

TheStreet Recommends

"In Q3 that business, which includes the app store and music, grew 19% to $6 billion. Now, that's a relatively small part of Apple's revenue, but investors appreciate its fast growth, and high margins," Lipton said.

Shares of Apple were higher in late morning trading on Monday.

(Apple is a core holding of Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: AAPL

Image placeholder title