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This week Massive Tech has began to report This autumn outcomes and provides expectations for Q1 and past. These names are sometimes watched with a lot anticipation and have a tendency to ship huge beats over analyst estimates (the S&P 500 tech sector had a 92% EPS beat price for Q3). Nonetheless, the latest sell-off out there has tech buyers trying much less assured in future prospects.
Up to now, we’ve had better-than-expected outcomes from (NYSE:) and (NASDAQ:). IBM surpassed sell-side estimates due to double-digit progress in consulting and cloud revenues. Microsoft additionally attributed their outcomes to progress in cloud revenues which elevated 32% YoY. Tomorrow we hear from Intel (NASDAQ:), and the tech earnings parade concludes with extremely anticipated earnings from Apple (NASDAQ:) Thursday after the bell.
Apple’s often generates plenty of consideration, and this quarter must be no exception, particularly contemplating how the sector is taking it on the chin this yr. Tech has been hit exhausting as surging charges make that sector’s future earnings look much less enticing, pushing up the price of borrowing wanted to put money into innovation. Worth compression can also be a giant concern, with P/Es for a lot of names within the area ballooning in 2020 and 2021. Apple hit a peak P/E of 41.8 final December, now settling down at (a nonetheless very excessive) 28.5.
After hitting $3T market cap only a few weeks in the past, Apple’s inventory is at present down 12.21% YTD, vs. the , which is down 9.18%, and the , which has fallen 13.57% (as of January 25 shut). Nevertheless, the corporate is giving non-verbal cues that counsel what they are going to share on Thursday’s name could be higher than buyers count on.
Wall Road Horizon has discovered that whereas a standalone occasion similar to an organization’s upcoming earnings launch date might have an effect on volatility, investigating a number of occasions intently in relationship to at least one one other can have a stronger impression on an organization’s company monetary well being. Observing the data pre-event, through the occasion, and post-event and the way they work together is crucial to understanding how occasions relate to buying and selling and threat methods. At the moment, we see a bullish occasion cluster lining up for Apple in Q1.
January 27 – Fiscal Q1 2022 Earnings Report and Convention Name
Apple’s Q1 occasion cluster kicks off with their FQ1 earnings report and subsequent name on Thursday, January 27.* At the moment, sell-side analysts (polled by FactSet) are anticipating EPS to return in at $1.90 and revenues of $119B, which might counsel YoY progress of 13% and seven%, respectively. That is first rate progress, though nowhere close to what we noticed in FQ2 and FQ3 when revenue progress soared above 100%. Fiscal Q2 and Q3 EPS 2022 progress are at present projected to return in detrimental.
February 7 – Future Dividend Announcement
Apple has a historical past of saying quarterly dividends, with one improve a yr. On February 7, they’re projected to announce an unchanged dividend of $0.22.* This monitor file of persistently growing dividends and their potential to move off larger costs might make Apple enticing as rates of interest rise by insulating buyers from inflation whereas providing a yield that (albeit growing) bonds don’t.
February 18 – Video Launch of Luck
On February 18, AppleTV will launch the computer-animated fantasy movie Luck*, starring Jane Fonda and Whoopi Goldberg. That is almost a yr after the movie was initially scheduled to be launched (March 19, 2021).
Whereas Apple TV nonetheless owns solely a small portion of the streaming market (based on JustWatch it’s 5%), that quantity continues to develop regardless of immense competitors from behemoths similar to Netflix (NASDAQ:) and Amazon (NASDAQ:) Prime. These latter two names noticed a gentle deceleration of progress in 2021, with Netflix simply saying on their latest This autumn name that regardless of big world hits similar to “Squid Sport” final yr, new paid subscribers fell to their lowest degree since 2015. This opens up the door for Apple TV to steal much more market share in 2022.
March/April – Spring Product Occasion
For the final decade, Apple has held its annual spring occasion in March or April to announce new merchandise. At this yr’s occasion, the corporate is predicted to announce their 5G Telephone SE and latest iPad.
Whereas there was no official announcement about when this yr’s occasion will happen, hypothesis is that it’s going to return to March (because it was from 2011 – 2019), after not being held in 2020 because of COVID lockdowns after which being held just about on April 20 of final yr.
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