Apple (AAPL) Q3 2022 results

Apple CEO Tim Cook at Apple’s annual Worldwide Developers Conference in San Jose, California on June 6, 2022.

Pierre Dasilva | Reuters

Apple will release results for its third fiscal quarter ending in June on Thursday.

Here’s what Wall Street expects, according to consensus estimates from Refinitiv:

  • PES: $1.16 expected
  • Revenue: $82.81 billion expected

Investors will look to Apple’s fourth quarter guidance for any signs of global consumer weakness around the world. Other PC and smartphone vendors said in the quarter that sales were slowing, but mostly in the low-end market as opposed to the high price points that Apple is focusing on.

Analysts expect the company to give fourth-quarter guidance of $1.31 in earnings per share and nearly $90 billion in sales.

Apple hasn’t provided guidance since the pandemic began in early 2020, and instead offered a few data points that suggest where its revenue and profits will land.

Apple’s investors will focus on the company’s business in China, which is not only an important market for sales but also where most of its products are assembled.

Analysts polled by FactSet predict Apple sales in Greater China will be around $13.79 billion, down from $14.56 billion in sales a year ago.

Apple warned in April that its revenue would be negatively affected by about $4 billion to $8 billion due to supply issues, including chip shortages. Several facilities across Apple’s supply chain saw production shifted or canceled under China’s Covid restrictions during the quarter.

Investors will also want to keep tabs on Apple’s profitable and rapidly growing services business, which includes monthly subscriptions, payment fees, warranties, Google Search license fees and revenue from Google. iPhone App Store.

Analysts polled by FactSet expect services to grow 12% year over year, down from 17% growth in the second quarter and 27% growth in 2021.

Lance B. Holton