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What Investors Need to Know About Apple Going Into the Second Half of 2019

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Apple (AAPL) - Get Apple Inc. Report is set to report earnings on Tuesday April 30th after the bell.

Analysts polled by FactSet are expecting earnings of $2.36 per share on average on revenues of $57.54 billion, and will be looking for signs of a rebound from Apple's weak December quarter results, which were dragged down by sluggish iPhone sales in China. Apple shares were down 2.1% on Tuesday morning to $200.37; they are up about 27% year to date.

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As Apple continues its transition from hardware to services investors will want to keep an eye on services growth and services margins, as Zev Fima, Research Analyst for states, 

"Services provide for a recurring revenue stream at higher margins, a factor that serves to reduce earnings volatility while allowing for a higher percentage of sales to fall to the bottom line, as a result, we believe that Services growth and the installed base, are much more important than how many devices the company can sell in a given 90-day period."

Other factors Apple investors will want to monitor in the second half of 2019 is news regarding a 5G iPhone, which seems much more likely after Apple settled with 5G chip maker Qualcomm (QCOM) - Get QUALCOMM Incorporated Report , and what Apple plans to do with their hundreds of billions of dollars in cash as they work towards their stated goal of being "net cash neutral."

Apple is a holding in Jim Cramer'sAction Alerts PLUS Charitable Trust Portfolio.Want to be alerted before Cramer buys or sells AAPL? Learn more now.

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