Apple Inc (NASDAQ:AAPL) is expected to report a drop in profits and lower revenue when it posts its latest quarterly earnings after the market close on Thursday, May 4, as consumers continue to curb their spending on non-essentials like phones, tablets, and computers amid high inflation.
For the second quarter of fiscal 2023, the company is expected to report earnings per share of $1.44, down about 6% from $1.52 in the year-ago quarter.
Revenue is seen decreasing to $93.32 billion, per Zacks Consensus Estimate, about a 5% decline from $96.39 billion in the comparable quarter last year.
Apple again declined to provide its own guidance for the quarter, a typically slower period for the company following the holiday season.
CMC Markets UK chief market analyst Michael Hewson noted Apple’s commentary that it expects to see a similar 5% decline in its second quarter revenue as seen in the first quarter, the first time investors have seen such declines since 2016.
“On a side note, Apple may have benefited from the recent banking turmoil after it launched a banking service and a new savings account with a 4.15% interest rate, although you need to have an Apple credit card to qualify,” Hewson said.
He noted that Apple stock has behaved more like a safe haven asset than a tech company over the last quarter. The stock is up almost 35% in the year to date.
“Apple shares have held up reasonably well over the last quarter and has been notable in being one of the few tech companies that hasn’t announced widespread job cuts, with the shares trading at their highest levels this year, with very little dip in the sell-off seen in March,” Hewson said.
Apple shares were up around 1.3% on Wednesday morning ahead of its earnings release tomorrow.
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