Apple Ahead Of Its Quarterly Results In 2022: What You Need To Know

Apple Inc. is expected to (NASDAQ:AAPL) dazzle with its most recent earnings. On April 28, after the market closes, Apple will release its first quarter results in a press announcement and conference call.  Analysts largely expect the company to report record earnings of $2.59 billion. Additionally, analysts are predicting the company will set a new quarterly revenue record of $7.29 billion.

With the company on the rise, we’re excited to see what it has in store for its investors. The shares are trading at $167.32 (+1.36) as of this writing.

Investors need to be aware of these things before seeing the company’s earnings.

Apple faces fierce competition.

Tim Cook and his team will have difficulty attracting analysts and investors. In addition, Apple will face tough comparisons in fiscal 2020 due to its stellar budgetary 2021 performance. 

The 5G-equipped iPhones, which were due to be released in the second quarter of 2020, were the main reason for the 54% increase in revenue last year. However, due to delays in the launch of the new device, many smartphone orders were delayed from the Christmas season through the second quarter fiscal year.

The story didn’t end there. The Mac and iPad sales have increased by nearly 70% each year. Both the pandemic-era lockdowns and hybrid-style return of the workplace increased demand for tablets and PCs.

None of these reasons apply this time, but smartphones could still benefit from the highly-received iPhone 13 or the recently introduced iPhone SE 5G.

Wall Street is expecting to see this in its place. However, it does not mean that Apple’s first-quarter in 2022 will be less successful than last year.

According to Yahoo Finance estimates, fiscal Q2 analyst forecasts sales of $99 Billion. That would be a 5% year-over-year growth rate. What’s wrong? This scenario would result in an annualized 2-year growth rate of 27%.

An average analyst predicts EPS at $1.43. The bottom line would grow at a modest 2 to 3 percentage points year-over-year but a remarkable 50 percent compounded over two years.

Even though the COVID-19 consumption tailwinds are gone, Apple is expected to perform well in fiscal Q2. However, due to the pandemic, restrictions to supply chains that could limit product availability or put pressure on profit margins may hurt profits.

AAPL stock is slowing down as the company prepares for reporting results.

Apple shares investors may feel more confident going into earnings week, as AAPL has de-risked ahead of fiscal Q2 results.

Apple stock is close to surpassing the $3 trillion mark on March 29. However, the share price dropped by more than $14 to $165 in the past year. Apple is just one step away from the correction zone, 9 percent below its all-time highs.

AAPL shares could offer bargain-hunters an excellent opportunity to participate in the action, despite recent declines.