Technology giant Apple Inc (NASDAQ: AAPL) is set to report fourth-quarter financial results after the market close Thursday.
Here's a look at the earning estimates from analysts, what analysts are saying ahead of the report and key items for investors to watch.
Apple Earnings Estimates: Analysts expect Apple to report fourth-quarter revenue of $89.27 billion, according to data from Benzinga Pro.
Apple reported fourth-quarter revenue of $90.15 billion in the previous fiscal year. The company has beaten revenue estimates from analysts in six of the last seven quarters.
Analysts expect Apple to report fourth-quarter earnings per share of $1.39, compared to $1.29 reported in the comparable quarter last year. The company has beaten earnings per share estimates in six of the last seven quarters.
What Apple Analysts are Saying: One of the biggest items to watch in Apple's quarterly report will be iPhone 15 demand, according to Wedbush analyst Dan Ives.
Ives, who has an Outperform rating and $240 price target, expects Apple to report a good outlook on iPhone sales and demand.
"Right now the overall sentiment of Apple on the Street is a negative 'groupthink mentality' heading into the print that we view as very disconnected from the current iPhone 15 growth we see in the field based on our recent checks and trip to Asia that gives us a high level of confidence in owning Apple at these levels," Ives said.
The company's Services sector could see double digit growth, the analyst said.
Revenue and earnings per share estimates are both beatable numbers for Apple, he said.
"It's all about iPhone 15 demand and Services growth back in the double digits for FY24."
Demand for the iPhone 15 in China will be a key item to watch and to listen for in Apple CEO Tim Cook's comments, Ives said.
"We believe Cook will have a generally positive tone on the call around China iPhone demand for the December quarter despite massively negative Street sentiment."
Ives said fiscal 2024 could end the "growth demise story" spun by Apple bears.
"Apple is poised to have a very strong year ahead with a sum-of-the parts valuation we peg at $240 per share."
Apple's "Scary Fast" event, which showed off new products and company updates, saw mixed reviews from analysts.
Needham analyst Laura Martin questioned the timing of the event coming the same week as Apple's earnings report.
"The odd timing, just three days before earnings, causes us to worry that laptop and iMac sales were weak in the Sept. Q," Martin said.
The analyst, who has a Buy rating and $195 price target, said the launch of the new products and optimism around them could be a way to "mitigate any negative share price reaction" to the fourth-quarter earnings results.
Here's a look at other analyst ratings for Apple in the month of October:
KeyBanc: downgraded Apple from Overweight to Sector Weight, no price target.
Bernstein: Market Perform, $195 price target.
Barclays: Equal-weight, lowered price target $167 to $166.
Morgan Stanley: Overweight, lowered price target $215 to $210.
Bank of America: Neutral, $174 price target.
Oppenheimer: Outperform, lowered price target $220 to $200.
Key Items For Apple Investors To Watch: Initial sales demand for the iPhone 15 will be the biggest item in the quarter and the key for many analysts and investors. The results could also cause shares of suppliers for the phones to be impacted in trading on Thursday and Friday.
China remains key for Apple, with reports of bans in the country and weakened iPhone demand looming over the quarterly report. Apple's commentary on China could be one of the biggest items to watch Thursday.
Like many technology companies, Apple is investing in artificial intelligence moving forward. Comments on AI will be a big topic in the fourth quarter as investors and analysts wait to hear what Apple is doing in the growing sector and how it can compete with companies that have been aggressively spending to get ahead.
Overall comments on macro concerns could also be key for Apple. The company is one of the most well-known makers of several consumer products, and commentary on demand and price points could be an item to watch.
AAPL Price Action: Apple shares were trading 0.78% higher at $172.10 Wednesday versus a 52-week trading range of $124.17 to $198.23. Shares of Apple are up 37% year-to-date in 2023.