What To Expect From Apple's Quarterly Earnings Report

Technology giant Apple will reveal fiscal third-quarter earnings after the bell Tuesday. Several tech companies have already done so in the past week, with devastating results for social media companies like Facebook and Twitter. However, Apple is expected to avoid a similar fate, according to CNBC.

Analysts expect Apple to report somewhere in the neighborhood of $52 billion in revenue for the quarter. It is unlikely to be the most exciting earnings report for Apple, as it is sandwiched between major hardware releases. Last year’s new iPhone models have already been out for more than one fiscal quarter, while this year’s models have yet to be officially unveiled.

The performance of the high-end iPhone X will, once again, be the focal point for investors. There was plenty of anxiety before Apple’s last earnings report that the $1,000 smartphone would be too pricey for most consumers. However, Apple CEO Tim Cook did something of a victory lap in May when the company reported that the premium phone was its highest selling model during the previous quarter.

“Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter,” Cook said at the time. The iPhone X launched in early November, weeks after the more affordable iPhone 8 models.

The other main thing shareholders will look at in Apple’s upcoming report is the company’s forecast, according to MarketWatch. Put simply, if Apple’s forecast is higher than usual during the next quarter, expect new iPhones to launch in that time. If not, the expected trio of new phones could come closer to the end of the year.

The past week has been nightmarish on the stock market for a few tech behemoths. After reporting lower-than-expected active user growth, Facebook (FB) plummeted to its worst single day on the market ever. One of Facebook’s competitors, Twitter (TWTR), also saw its shares plunge after a slight drop-off in monthly active users.

Since Apple has a healthy and profitable hardware business, it is unlikely that the company will suffer the same fate after its earnings report. Apple’s lineup of phones, tablets and computers are popular and provide a source of income that has helped make it an industry leader.