When? After Market Close, Tuesday Oct 25
Apple’s earnings report could attract attention for a number of reasons. This quarter, Apple launched the iPhone 7 but unlike in previous years, it hasn’t reported initial sales results, so Tuesday’s earnings report could attract even more attention than usual.
Apple shares have been rising in recent weeks and are trading indicating strong sales expectations. Last year, Apple shares rallied into the September quarter report and then sold off dramatically. Currently, Apple is trading at about the same level as it was a year ago (circles on chart below), but street expectations are lower. Expected EPS of $1.65 and expected sales of $46.9B are down 15.5% and 9.0% from last year’s results. The RSI chart at bottom suggests that Apple may be running out of momentum as it approaches $120.00.
Apple’s shares have also benefitted lately from Samsung’s battery fire problems which led to the termination of the Galaxy Note 7 device. Traders will also be watching for comments out of Apple on whether it has been able to gain market share at Samsung’s expense.