Apple
has a lot to prove on Monday afternoon. The consumer-tech giant
reports its fiscal first-quarter results, and there's plenty riding on
the report. The stock hit a fresh 52-week high last month, and even
after pulling back in recent weeks it's still trading 6% higher than
where it was the day after its fourth quarter was announced.
Let's go over a few of the reasons the market's holding out for an encouraging Apple quarter.
1. Growth will be back
After three quarters of year-over-year declines in profitability -- and flat net income the period before that -- analysts see a resumption of bottom-line growth at Apple. We're not talking about a lot of growth here. Analysts see earnings per share climbing just 2% to $14.09, and all of that could be the handiwork of having Apple's share repurchases push the outstanding share count lower. However, it will be a symbolic turnaround at the very least if Apple lives up to expectations, and that brings us to our next point.
Let's go over a few of the reasons the market's holding out for an encouraging Apple quarter.
1. Growth will be back
After three quarters of year-over-year declines in profitability -- and flat net income the period before that -- analysts see a resumption of bottom-line growth at Apple. We're not talking about a lot of growth here. Analysts see earnings per share climbing just 2% to $14.09, and all of that could be the handiwork of having Apple's share repurchases push the outstanding share count lower. However, it will be a symbolic turnaround at the very least if Apple lives up to expectations, and that brings us to our next point.
2. Apple's been quietly b…
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