What Do Analysts Expect From Apple’s Q2 2024 Earnings Results?

Apple will announce its fiscal second quarter 2024 financial results on May 2, and analysts expect earnings to be disappointing compared to recent years.

Apple Earnings One Year Ago

Analysts will be making a year-on-year comparison of the Q2 2024 financial results to the year-ago quarter fiscal Q2 2023. During Q2 2023, Apple reported revenue of $94.8 billion and a net quarterly profit of $24.1 billion ($1.52 per diluted share).

iPhone sales during Q2 2023 earned $51.3 billion, the iPad brought in $6.7 billion, and Mac earnings slipped to $7.2 billion. Meanwhile, Wearables, Home, and Accessories earned $8.76 billion, and Services earned $20.9 billion.

Events of Apple’s Fiscal Q2 2024

The Apple Vision Pro hit store shelves in February, and Apple users were finally able to get their heads inside the much anticipated spatial computing headset. Apple Vision Pro sales were low compared to the launch of previous Apple devices, like the iPhone or iPad, so the headset will likely not contribute to any increase in Apple revenue. However, analysts will be curious to find out just how well the headset performed during the quarter.

Apple also quietly released a new M3-powered MacBook Air lineup in March.

Analysts will also be interested to hear about antitrust lawsuits against the company and the European Union’s enactment of its Digital Markets Act, which required Apple to make several changes to its iOS and iPad App Stores and allow non-WebKit browsers on the platforms.

What Wall Street Expects

As shared by AppleInsider, Yahoo Finance’s consensus of 24 Wall Street analysts has Apple earning an expected average of $84.4 billion, with an estimate of $82.32 billion on the low end and $86.15 billion at the high end. This represents a year-on-year sales reduction of 5.1%.

The earnings per share range falls between $1.32 and $1.45 for an estimated average of $1.41.

What Individual Analysts Expect From Apple’s Fiscal Q2 2024

JP Morgan: In a note to investors, JP Morgan says it expects Apple to report $89.1 billion in revenue, slightly below its own consensus measure of $90.3 billion. They expect to see gross margin beat consensus at 46.8%, with an EPS of $1.49. JP Morgan says Q3 results are expected to be a “more significant miss to revenues.”

TD Cowen’s year-on-year expectations for the quarter are for a 5% downswing in revenue and expects tough year-on-year comparisons for the iPhone, with segment revenue at around $38.4 billion. Mac sales are expected to be “soft” while iPad is expected to see its year-on-year trends “stabilize” thanks to exposure in the enterprise. New iPad models are expected to contribute to improved sales. Services will continue to be strong, partially offsetting negative trends in Apple’s products business.

Apple will announce its fiscal 2024 second-quarter results later today (May 2) and is expected to release the earnings information in a press release around 4:30 p.m. ET. Following the release of the financials, Apple CEO Tim Cook and CFO Luca Maestri will conduct a conference call with analysts and journalists to comment on Q2 and share expectations for the fiscal third quarter.