Jump to content

Apple share price: Q1 2022 earnings preview


MongiIG

Recommended Posts

Apple share price: Q1 2022 earnings preview

Apple Q1 earnings to benefit from iPhone 13 and Mac sales.

BG_APPLE_logo.jpgSource: Bloomberg
 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Monday 24 January 2022 

When are the Apple results?

Apple Inc., the world’s largest company by market capitalisation, is set to report first quarter (Q1) 2022 earnings on the 27th of January 2022.

What ‘the Street’ expects from Apple Q1 2022 results

Since the pandemic’s disruption to supply chains and, in turn, the uncertainty pertaining to future earnings, Apple Inc. stopped issuing forward guidance for its quarterly results.

Q1 has historically been the strongest quarter of the year for Apple as it reports on the three months ending December, benefitting from pent-up holiday demand most notably for the latest installment of its iPhone.

iPhone sales led by the iPhone 13 could account for more than 60% of group revenue in the reporting period. High single digit to low double digit growth is expected from Mac sales. Wearables are expected to deliver mid-single digit sales growth while service revenue is likely to see only marginal growth if any.

A consensus of estimates from Refinitiv data for the upcoming Q4 2021 Apple results arrive at the following:

• Revenue for the quarter of $118.547 billion (+6.38% year on year)

• Earnings per share (EPS) for the quarter of $1.89 (+12.37% year on year)

How to trade Apple results

In terms of an institutional view as of the 21st of January 2022, a Refinitiv poll of 43 analysts has an average rating of ‘buy’ for Apple, with a long-term price target (mean) of $180.84.

AAPL%20refinitiv%202401.pngSource: Refinitiv

 

In terms of a retail trading view, as of the 21st of January 2022, IG Client Sentiment data shows 86% of IG clients with open positions expect the price to rise in the short-term, while 14% expect the price to fall in the near term.

AAPL%20client%20s%202401.pngSource: IG
APPL%202401.pngSource: IG charts

 

The share price of Apple continues to correct in the short-term along with the company’s tech sector peers. The correction follows the stock trading in overbought territory and was pre-warned by the head and shoulders chart pattern (shaded). The long-term uptrend for Apple does however remain firmly intact.

Traders respecting the longer term uptrend will be looking for signs that the correction has ended before looking for long entry. The 156.60 level finds a confluence of both trendline and horizontal support and provides the next downside target should the correction persist.

For long entry we are looking for a sharp bullish price reversal before this level, accompanied by a move out of oversold territory from the stochastic oscillator.

Summary

• Q1 2022 results are scheduled for the 27th of January 2022

• Revenue for the quarter of $118.547bn expected

• Earnings per share for the quarter of $1.89 expected

• The average long-term broker rating consensus for Apple is ‘buy’

• 86% of IG clients with open positions on Apple expect the price to rise in the near term

• The long-term trend for Apple remains up, although in the short-term we are seeing a correction from near term highs

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Of course, the CEO is important, but today the role of the media is huge.  CZ has been known since 2017, but no one knows Richard Teng now. Even if a survey was conducted, Binance's CEO would still be defined as CZ by people.  Stock market confidence comes first. This is why Binance's SAFU security fund stands out and today Binance has 193 million users.
    • “FOMO” is the abbreviation of the initials of the words Fear of Missing Out in English. The English expression Fomo means "fear of missing an opportunity". “FOMO”, which we frequently encounter in the cryptocurrency world, is a term used to avoid regret. People who invest in cryptocurrencies have experienced this fear at least once. This effect affects everyone, from professionals to amateur helpers. To the question of what is fomo in the stock market, fomo is related to social media, stock market, cryptocurrency world, etc. We must say that it has various effects in various fields. In the cryptocurrency world, buying and selling transactions continue 24/7. Increases and decreases may continue at any time of the day. There are some factors that cause the FOMO effect in the cryptocurrency exchange. These factors; Greed Anxiety Impatience It can be listed as excitement. Investors watching the cryptocurrency they want to invest in are waiting for a decline opportunity. Sudden changes in opportunities in the cryptocurrency world cause investors to change their decisions. Investors who see opportunities increase are disappointed when positions are opened in a hurry and declines begin. In 2017, a recent example of FOMO, investors bought cryptocurrencies at high prices and incurred losses. Those who bought crypto currencies in large amounts experienced losses. The Fomo effect also has an individual nature. Individuals may experience the fomo effect for their personal investments. Fomo is not just a mass urge. FOMO occurs as emotional behavior rather than rational thoughts. One of the simplest examples is that it quickly pushes investors to the thought that motivates the person, such as "those who have cryptocurrency live a luxurious life." FOMO, which pushes towards irrational behavior, psychologically causes rapid action. In order to avoid losses, investments are made based on concrete information and graphics, not on attractive stocks. How to Deal with the Feeling of Fomo? People who make their own plans and research the markets they will enter in advance become conscious and follow the markets. Improving themselves, exploring hobbies, and becoming calm will reduce the effects of fomo. Balancing the fomo causes you to buy cryptocurrencies, not to make hasty decisions, and to perceive what is happening around you as it is. Cryptocurrency buyers need to be able to make rational decisions. Investments may take shape with FOMO disease. While trying to take advantage of the opportunities offered by other investors, you may encounter large losses. Decisions made with emotional motivation lie behind untimely investments. Fear of Missing Out on High Earnings It is the feeling felt by investors who rush to purchase the asset for fear of missing a profit opportunity.  When there are strong emotions, too many people have FOMO, which can cause parabolic price movements. We should mention that crypto money fomo causes great losses.  Investors competing for seats and switching from one asset to another often signals that the fomo effect is increasing. Extreme market conditions can change the general rules of the market. Buying cryptocurrencies based solely on increasing prices without doing research, reading charts, or technical analysis is an indication that we are caught up in FOMO.
    • Staking returns change daily. The stock market that gives the highest returns reduces the returns after a few days. The purpose of all exchanges is to attract money. So stay away from unreliable exchanges.
×
×
  • Create New...
us