Apple Earnings Report: Stock Hits Key Level Ahead of Rare Miss in Q4 Sales and Revenue Decline
Image source: wallpapercave
Wednesday, Apple stock went down a little bit and hit the 10-day moving average and an old resistance zone near $142.
Image source: wallpapercave
It answered with a strong rally and even more action. But that could slow the stock's rise after earnings, since Apple's stock has already risen 6.5% from yesterday's low.
Image source: wallpapercave
From here, it's just below the 50% retracement and the 50-week moving average.
Image source: wallpapercave
If Apple stock can get past these barriers, it will be able to reach the 61.8% retracement around $156, and then it will be able to reach downtrend resistance above $160.
Image source: wallpapercave
On the other hand, a pullback that held the $147 level would be very bullish. Apple stock is still fine if it finds support at the 10-day moving average that is going up.
Image source: wallpapercave
If the stock falls below $140, we'll have trouble. That opens the door to the 21-day and 50-day moving averages. Below those, this chart will turn decisively bullish.
Image source: wallpapercave
In the end, Apple stock is a market leader in terms of both market cap and sentiment. It's not as clear as "what Apple does, the market does too," but it's close.
Image source: wallpapercave
The bulls want the stock price to go above $150 and stay above $147. After those points, just go from level to level as shown above.
Image source: wallpapercave
Apple shares dipped nearly 4% during extended trading on Thursday before rebounding as the tech giant provided outlook data for the upcoming quarter. The company's statistics indicated iPhone sales would decrease less than during the Christmas quarter.
Image source: wallpapercave
Apple did not disclose March quarter guidance. Since 2020, citing pandemic uncertainty, it hasn't offered guidance. In its fiscal second quarter, analysts predicted sales of $98 billion.
Image source: wallpapercave
Apple provided performance expectations. Luca Maestri, CFO, indicated March quarter revenue would decline like December quarter revenue. Maestri predicted services will expand, but Mac and iPad sales will fall double-digits from the year before. Apple said iPhone sales will fall less in March than December.
Image source: wallpapercave
According to a news release, the company's quarterly sales for the quarter ended December 31, 2022 was $117.2 billion, down 5% year over year.
Image source: wallpapercave
Tim Cook highlighted the earnings report's positives. As we all navigate a hard environment, we are proud to have our best assortment of products and services ever, and as usual, we remain focused on the long term and are leading with our values in all we do,” Cook wrote.
Image source: wallpapercave
In an interview with CNBC, the CEO discussed iPhone production concerns in China, the economy, and the U.S. dollar. Apple, like the rest of the globe, will cut strategically. “We recognize the environment is tough,” Cook continued. Thus, cost reduction. We're cutting recruiting and hiring carefully.”
Image source: wallpapercave
The company's hardware sales dropped after the epidemic, as people rearranged their professional and school life during a relative economic boom. Quarterly income dropped the most since 2016.
Image source: wallpapercave
Mac and iPad revenue fell nearly 30%, while iPhone revenue fell 8%. Supply chain and manufacturing challenges have slowed the handset in previous years. During the company's busiest season, China's new lockdowns made matters worse. Apple claims iPhone manufacturing levels are satisfactory.
Image source: wallpapercave
After a rough quarter, Apple publishes earnings Thursday after the markets close, and investors may worry that the stock won't perform as well as it has in the past.
Image source: wallpapercave
Dow Jones Market Data reports that Apple stock has grown 0.3% before results since 2007, the year the iPhone was debuted. After the release, the stock typically rises 1.1%. The month after earnings has also seen the stock rise 2.3%.
Image source: wallpapercave
Apple has struggled lately. In 2022, China's largest iPhone producer locked down Covid-19. That hampered manufacture of Apple's more expensive iPhone 14 Pro and Pro Max. China ended its zero-Covid policy, but damage may have been done.
Image source: wallpapercave
“This supply constraint certainly severely impacted iPhone unit sales, with some demand likely pushed into [the March quarter] and some demand lost due to lack of product availability in the holiday period,” BofA Securities analyst Wamsi Mohan said in a research note last week.
Image source: wallpapercave
Apple earns most from iPhones. Apple's fourth-quarter sales were $90.1 billion. iPhone sales generated $42.6 billion.
Image source: wallpapercave
FactSet analysts predict first-quarter iPhone sales of $67.8 billion, down from $71.6 billion last year. Evercore ISI analyst Amit Daryanani believes Apple can keep investors pleased if iPhone sales fail, but it must announce that on Thursday to avoid a stock plunge.
Image source: wallpapercave