FILE PHOTO: Formula One F1 – United States Grand Prix – Circuit of the Americas, Austin, Texas, U.S. – October 23, 2022 Tim Cook waves the chequered flag to the race winner Red Bull’s Max Verstappen.
Mike Segar | Reuters
Apple reports fiscal fourth quarter earnings on Thursday after the bell.
The fourth quarter, which runs through the end of September, is the first quarter that includes a little more than a week of sales of the new iPhone 17 models.
Analysts have said that early signs are pointing to improved demand for the iPhone 17 models, especially the entry-level and Pro models. Investors will be looking for any color from CEO Tim Cook and CFO Kevan Parekh on the demand they’re seeing for the new devices.
Analysts polled by FactSet expect Apple’s fiscal 2025 to be the first year of iPhone sales growth since 2022.
Apple has also been negatively affected by Trump administration tariffs, although the company has gotten praise from President Donald Trump over its plan to spend $600 billion in the U.S. and boost American semiconductor manufacturing. Apple also announced last week that it was shipping artificial intelligence servers from a factory in Houston.
In July, Apple said it could incur $1.1 billion in tariff costs. Investors will be watching to see if its actual costs came in under its forecast, as well as what tariff costs it sees in the current quarter.
Some investors want to see Apple step up its level of capital expenditure and AI spending. Apple has largely sat out the data center and AI chip investment boom that other large tech companies are spending tens of billions on.
Last quarter, Cook said that it was “significantly” growing its investments in the technology. That will likely show up in the company’s capital expenditures, but commentary from Cook may provide insight into the company’s AI strategy.
Cook will also likely praise the company’s five-year deal with F1 to broadcast its races in the U.S. on Apple TV, the latest development in the company’s sports and media strategy.
Expectations remain high for Cook and Apple. In the June quarter, Apple reported 10% year-over-year revenue growth. For the September quarter, analysts polled by LSEG are expecting 7.7% sales growth.
Here’s what Wall Street is expecting, per LSEG estimates:
- EPS: $1.77
- Revenue: $102.24 billion
Analysts polled by LSEG expect Apple to guide to $132.31 billion in December quarter sales, and earnings of $2.53 per share.