Tech giants Apple and Facebook will report quarterly earnings after the close on Wednesday. Here’s a primer on what to expect and what to look for in the numbers.
Earnings: Analysts are looking for Apple to earn $10.19 a share, compared with a profit of $10.09 a share in the same period a year ago.
Facebook is expected to report an adjusted profit of 24 cents a share, up from 12 cents a share in the year-earlier, according to analysts estimates.
Revenue: Apple should report sales of $43.7 billion, according to forecasts, slightly higher than the $43.6 billion the company reported in last year’s fiscal second quarter. The company itself estimates its sales will be between $42 billion and $44 billion for the quarter.
Facebook’s revenue is expected to soar 62 percent to $2.36 billion from $1.46 billion in the year-ago quarter, says analyst estimates.
Stock reaction: Apple shares have performed well over the last year, rising 30 percent to almost $525. The company’s stock is down nearly 9 percent from the 52-week high of $575.14 it reached on Dec. 5.
Facebook shares jumped sharply the last time it reported earnings in January after the company blew past Wall Street estimates. The stock has survived the recent tech selloff, rallying 10 percent in the last three months and more than 15 percent year-to-date.
Key points: The quarter is an odd one for Apple, as its sales will be down sequentially from the company’s first quarter, which is always the company’s busiest business period. Investors will be looking for iPhone sales to increase above the 37.4 million reported a year ago, and sales of iPads to rise beyond last year’s 19.5 million.
Analysts are likely to focus on Facebook’s user base growth, which has been slowing, but strong online ad revenue growth, especially in mobile, could offset those worries.
Investors are also expected to pay close attention to executive comments on Facebook’s plans for video ads and monetizing Instagram, which are expected to lead to even stronger revenue growth.
With MarketWatch