What Does Wall Street See for Apple's Q3?

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Apple (NAS: AAPL) is expected to report Q3 earnings around July 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Apple's revenues will decrease -0.2% and EPS will decrease -21.8%.

The average estimate for revenue is $34.97 billion. On the bottom line, the average EPS estimate is $7.29.


Revenue details
Last quarter, Apple notched revenue of $43.60 billion. GAAP reported sales were 11% higher than the prior-year quarter's $39.19 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $10.09. GAAP EPS of $10.09 for Q2 were 18% lower than the prior-year quarter's $12.30 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 37.5%, 990 basis points worse than the prior-year quarter. Operating margin was 28.8%, much worse than the prior-year quarter. Net margin was 21.9%, 780 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $170.65 billion. The average EPS estimate is $39.43.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 27,859 members out of 30,161 rating the stock outperform, and 2,302 members rating it underperform. Among 5,655 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 5,435 give Apple a green thumbs-up, and 220 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Apple is outperform, with an average price target of $597.46.

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The article What Does Wall Street See for Apple's Q3? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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