How the iPhone Will Maul Tech Sector Earnings

How the iPhone Will Maul Tech Sector Earnings
by Wolf Richter • April 24, 2016


[font color="blue"]This is what we can look forward to this week.[/font]

Apple will report earnings on April 26 for the quarter ending March 31, its second quarter. According to Zacks, the ex-bad-items non-GAAP consensus earnings forecast is $1.97 per share. FactSet pegs it at $2.00 per share. A year ago, Apple reported $2.33 a share.

This would be a 15% year-over-year decline. It would be the first since the decline in the July-September quarter 2013. Apple could throw in miscellaneous disappointments in its numbers or its outlook – because it has been tough out there.

There has already been a slew of disappointing tech reports last week – the week of bad omens. On Monday, highflier Netflix scared investors with its lagging subscriber growth. Shares crashed 14%. They’re down 28% from their peak in January yet still sport a nose-bleed PE ratio of 330!

Other tech companies also reported inglorious results last week, such as IBM whose revenues fell for the 16th quarter in a row. The only hope is that it can continue to lay off people and buy back enough of its own shares – until what? No one knows. ...................(more)

http://wolfstreet.com/2016/04/24/apple-iphone-revenue-decline-sinks-tech-sector-earnings/