Yahoo Finance

Apple set to report second quarter results on Thursday after the market close. Yahoo Finances Dan Howley has a look at what we can expect. Hey Dan.

And listen, that's right. We're looking for a lot of talk about tariffs, obviously, uh whether or not we're seeing iPhone growth and whether or not Apple intelligence is driving any anything meaningful as far as growth goes. Let's just kind of go over the the the numbers real quick. Uh EPS is expected to come in at a dollar 62. That would be an improvement over the dollar 53 that they had seen in Q2 last year. Revenue is supposed to come in at 94.2 billion dollars. That would be an increase from 90.7 billion. That's all all good and grand, but the big question is iPhone revenue. And so that's expected to come in at 45.6 billion. Now that would be a decline versus the 45.9 billion they had seen in Q2 last year. So, where's that extra revenue come from if the iPhone's not selling as well? Well, analysts are expecting iPad, Mac and wearable services home, uh, you know, the the uh uh I uh HomePod, excuse me, uh those kinds of products to increase uh while the iPhone decreases. Now, one of the interesting things to look at will be greater China revenue and according to analyst estimates, it's expected to come in at 16.8 billion. That would actually be an increase from the 16.3 billion in the same quarter last year. So it seems like China will do slightly better. This is according to estimates than what they'd seen last year. That's after the drop uh from uh Q21 uh in China revenue that we had seen. Uh so a better kind of outlook for overall greater China revenue, which obviously incredibly important market for Apple, but it's seemingly not lining up with what they're expecting from the iPhone. So it could be that the greater China revenue increases as a result of consumers getting out there trying to get ahead of any potential issues related to the tariff situation. Uh it could also be uh uh to do with sales uh that were going on over in China at the time. I think one of the important things that we're going to be looking for is whether there's pull forward from consumers uh in in the last quarter. In other words, whether or not consumers knew the tariffs were coming and decided, well, okay, let's go get an iPhone now so we don't have to potentially pay more. We could we we should see more of that in Q3 if if there's any at all. Uh that's when you would really see that kind of shake out. But I think it's something that definitely uh keep your eye on if you're going to be watching Apple.

So help me kind of put a headline to this, Dan. To what extent are we going to get clarity from this earnings print from Apple about the brunt of tariffs impacting this business?

No, I don't think we're going to get very much uh, you know, uh clear-cut answers. Uh I think that, you know, Apple is very diplomatic. Uh obviously, Tim Cook has a decent relationship with President Trump. So I don't think that uh they're going to say, look, tariffs are going to annihilate us or anything like that. Uh I do think that there will be uh some uh probably hedging as far as uh the coming guidance goes, uh whether or not uh they'll dive into, you know, where that uh issue will be, whether or not they'll talk about uh the, you know, broader tariff plan uh or or any kind of, you know, critiques of that. You know, I I don't think that's going to happen. Uh but we should get some insight as to uh the the manufacturing processes that they may be uh taking, the steps they may be taking to offset any potential tariffs. So I think moving production to India for US users instead of China. But there's still a huge amount of production that comes out of China. So they they can't just pick up and move everything to India for US users. Right.

All right, Dan, thank you so much for joining us. Appreciate it.