From Savitz’ fiscal Q2 2021 earnings walk-up, posted Tuesday morning on Barrons.com (via Apple Stocks):
Apple has its work cut out for it trying to surpass 2020’s blowout results. The thing is, the tech giant just might be able to pull it off.
The buzz around Apple last year was off the charts, even for what is the buzziest of technology companies… The pieces all came together in the December quarter, when Apple posted its biggest quarter ever. Sales soared 21% to $111.4 billion, more than $8 billion over the Street consensus. Every product category—iPhone, iPad, Macs, wearables, and services—notched double-digit growth. Apple stock finished the year up 81%, adding nearly $1 trillion to its market cap.
That’s a tough act to follow, particularly with the March quarter, which always slows from the holiday-boosted December quarter. But Apple could pull off the quintuple double again when its results come out after the bell Wednesday. The Street certainly thinks so, even if the market, which has pushed Apple shares up less than 2% in 2021, has been more cautious. Consensus estimates call for double-digit increases from last year across the board: iPhones sales up 43%, to $41.4 billion; iPad sales up 29%, to $5.6 billion; Mac sales of $6.8 billion, up 27%; wearables sales (mostly Apple Watch and AirPods) of $7.4 billion, up 18%; and a 16% bump in services, to $15.5 billion.
Overall, the Street consensus expects sales of $77 billion, up 32% from a year ago, with profits of 98 cents a share. That would be the fastest top-line growth rate for any Apple quarter since March 2012, when revenues were about half what they are now. And most bullish Apple analysts seem to think their own estimates are too low—a print at $77 billion would likely trigger a selloff in the stock.
My take: I’m delighted that Erik will be our guest Saturday for this month’s post-earnings Apple 3.0 ask-me-anything (12:30 p.m. Pacific, 3:30 Eastern). There are a still a few seats left on the subscriber-only Zoom call. If you want one, drop me a note at firstname.lastname@example.org with Savitz in the subject line.
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