Apple Q2 earnings preview: Where next for Apple shares ahead of its quarterly results?

Apple has gone from strength-to-strength over the past year after reporting record sales, setting the stage for the company to deliver another solid set of results. We explain what to expect and look at where Apple shares could be heading.

Apple

When will Apple release its Q2 results?

Apple will release quarterly results on Wednesday April 28 at 1400 PT/1700 ET (2200 BST).

This will cover the first three months of 2021, which represents the second quarter of Apple’s financial year.

Apple earnings consensus: what to expect

Apple has continued to raise the bar during the pandemic. Its upcoming quarterly results follow on from the iPhone maker reporting its highest ever quarterly sales during the busy holiday season in the final three months of 2020, accompanied by a 35% jump in earnings.

All of its product categories delivered double-digit growth as demand for Apple’s entire ecosystem of products and services continues to grow. This should continue as a range of new products - including its new AirTags, a new iPad Pro and iMac that are both powered by its own M1 chip, its next-generation of Apple TV, and a new podcast subscription service – start to become available from the end of April.

While new hardware will help keep growth going, the focus is increasingly turning to how Apple leverages the billions of devices in people’s hands to push its digital services ranging from streaming and gaming to advertising. Meanwhile, the release of smaller additional hardware like AirTags continues to grow the Apple ecosystem and give its loyal fanbase more stuff to link up to their iPhone.

Expect the update to be short and sweet. Apple usually posts revenue and EPS figures and provides very limited commentary on its performance before divulging more information at its earnings call in the afternoon.

A Reuters-compiled consensus shows analysts are expecting Apple to report a 32% year-on-year rise in revenue to $77.2 billion and a 53% jump in earnings per share to 98 cents.

Apple Earnings Consensus

Q2 2019/20

Q2 2020/21e

Revenue

$58.31 billion

$77.18 billion

Diluted EPS

$0.64

$0.98

Where next for the Apple share price?

After hitting its record high of $145 at the start of the year the price has eased lower hitting a floor around the $120 zone.  

Buyers found fresh legs at the start of April. However, the price is consolidating around $130 awaiting a fresh catalyst.  

A strong set of numbers and forward guidance could see the share price take out resistance at $138 and head back towards $145 all time high. 

Any sense of disappointment could see the Apple share price test the 50 & 100 EMA around $125 before heading back towards the year to date low $120. 

How to trade Apple shares

You can trade Apple shares with City Index by following these four easy steps:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for ‘Apple’ in our award-winning platform
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade 

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