Apple’s 1Q2013 Earnings Preview

January 23, 2013 (2:30 pm)

Apple will release its quarterly earnings report this afternoon at 4:30pm EST. Here is a look at our expectations. We completed a thorough preview on December 28, with our thoughts and expectations on each product line.

1Q13 Estimate

The consensus numbers (via Bloomberg) that we need to watch for today are below. These figures are based on approximately 46-48 million iPhone sales and around 24 million iPads.

  • Revenue: $54.88 billion
  • EPS: $13.53
  • Gross Margins: 38.6%
  • Free Cash Flow: $15.4 billion

Apple’s guidance is also very important. Wall Street currently anticipates $45.5 billion in revenue, $11.68 EPS and 40.5% gross margins for the March quarter. Guidance will almost definitely be well below these figures. Apple has a history of sandbagging these numbers, which investors know and understand. But it’s the extent of that sandbagging that will determine how investors will react.