3 Things to Watch at Apple This Earnings Season

Updated

Apple is no longer a market darling. Shares of the consumer tech giant have shed roughly 40% of their value since peaking late last year. The long road to redemption may kick off next week when it reports its fiscal second quarter results.

Wall Street isn't holding out for much. Analysts see revenue climbing a mere 9%. When's the last time that Apple grew its top line in the single digits? The bottom line is even uglier. Wall Street sees the company posting its first year-over-year decline in profitability since 2003.

Apple needs to change investor perceptions, and that's why this earnings report is so important. The same company that stunned investors with low average selling prices and contracting margins during the holiday quarter needs to bounce back with this report.


In this video, longtime Fool contributor Rick Munarriz takes a look at three things that will move the stock higher or lower in the financial report.

This means war
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Apple share price and metrics data as of April 16, 2013.

The article 3 Things to Watch at Apple This Earnings Season originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement