Apple Inc. AAPL is scheduled to report earnings after Wednesday’s close. The stock hit a record high of $145/share and is currently trading near that level. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Apple Inc. is expected to report a gain of $1.39/share on $102.61 billion in revenue. Meanwhile, the so-called Whisper number is $1.52/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
Fundamentally, both sales and earnings have flat lined in the most recent quarter as the company’s market cap has topped $2.4 trillion! In Q4 2019, the company earned 1.25 and the expectation for Q4 2020 is $1.39 so that should reignite the earnings growth.
A Closer Look At The Technicals:
Technically, the stock is acting very well and just hit a fresh record high. The stock just broke out of a multi-month base as it continues to flirt with fresh record highs ahead of earnings.
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Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.