Apple Earnings Preview: Expectations Flying High For AAPL

apple earningsIt’s been an interesting earnings day for Apple (AAPL) stock. After appearing to break out of a large wedge, AAPL slipped on Monday before gapping down today. Perhaps earnings from Microsoft (MSFT) spooked investors, as currency concerns begin to loom larger. Or maybe it was the big miss on the December retail sales release. Either way, investors are showing some concern heading into Apple earnings after the bell.

According to Estimize, current Apple earnings estimates come in as follows: $2.60 EPS / 67.55B Revenues (Wall Street); $2.61 EPS / $67.71B Revenues (Estimize community).  As per usual, investors will listen to guidance, but Apple has been known to issue conservative guidance. More than likely, margins and iPhone sales will be a hot topic (perhaps as many as 70 million iPhone 6 units).

Implied volatility is high and indicating that a big move in the stock price is quite possible. And today’s dump only adds intrigue. I am not one to trade earnings reports, as I feel like it’s a bit like pulling that handle at a casino.

In the chart below, you can see a couple of potential outcomes post Apple earnings.

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Apple (AAPL) Daily Chart

apple earnings aapl chart january 27 2014


Apple is also a visual symbol for the consumer, so its earnings report will likely add to the developing consumer storyline.


Follow Andy on Twitter:  @andrewnyquist

No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.