Apple will report earnings after the bell

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1 year ago

February 1, 2024

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Apple reports fiscal first-quarter earnings after the bell. The quarter, which ends in December, is Apple’s biggest of the year by sales and the first full sales period for the iPhone 15, which launched in September.

Apple faces significant challenges, coming off four straight quarters with revenue declines. Investors will be closely watching to see if Apple guides to growth again in the current quarter.

Concerns about demand in China, Apple’s third-largest region by sales, will weigh on the company. Its iPad and Mac units could also have a tough quarter, since demand for computers remains muted.

On the other hand, Apple could give strong updates to the number of active devices in use, a metric that analysts use to forecast the company’s lucrative services business. Management could also offer some perspective on how it sees the first few weeks of preorders for Apple’s virtual reality headset, the Vision Pro, as a bright spot.

Some analysts believe Apple’s iPhone revenue may look good in a soft market quarter, outperforming rivals that are also seeing weak demand. But a strong quarter of iPhone sales over the holiday season could mean a seasonally weak March quarter.

“With the robust sell-in volumes in F1Q24, current expectations from investors have moved to a modest beat led by robust iPhone numbers, even though accompanied on the flip-side by above-seasonal iPhone decline into F2Q,” JPMorgan analyst Samik Chatterjee wrote in a note Wednesday.

Apple hasn’t given official guidance since 2020, but management usually provides data points on a call that signal how it sees the quarter shaking out.

For example, the company signaled to investors in November that the December quarter may not show a significant return to growth after four straight quarters of declining sales, signaling that it would be “similar” to last year’s December total of $117.15 billion.

Apple said in November that the iPhone would do well but that it expects iPads and Wearables, including Apple Watch and AirPods, to decline from last year. It said that the Mac unit would do better than a 34% year-over-year decline.

China demand will be closely watched. Apple faces renewed competition from Huawei in the region, and some surveys have shown sagging sales.

“iPhone purchase intentions in China fell to a 5 year low this year, with iPhone loyalty/retention rates falling to the lowest levels since 2013, indicating both economic pressures on high-end iPhone purchases and greater competition within the China market,” Morgan Stanley analyst Erik Woodring wrote in a note Wednesday.

IPhones were discounted in China during a shopping holiday called Singles Day, similar to the U.S. Amazon Prime Day, which may signal weak demand. But discounts can also drive sales.

“Apples revenue in China in F4Q declined -2.5% y/y and with limited drivers of growth in the region in F1Q (CounterPoint research indicating -9% y/y decline in units in China in C4Q for Apple), we expect investors will be focused on iPhone momentum following the recent price cuts,” Chatterjee wrote.

Beyond the nuts and bolts of Apple’s profit and loss during the December quarter, Thursday’s earnings report will be the first opportunity to hear from Apple management on how it sees the recent launch of its virtual reality headset, the Vision Pro.

The $3,500 device is expected to sell in small quantities this year, which means it won’t be material in terms of Apple’s business versus its mature product lines. The Vision Pro wasn’t sold in the December quarter — it only went up for preorder earlier this month and releases on Feb. 2. But many investors see Apple’s Vision Pro as a potential new major computing platform, with the ability to drive sales growth once future versions of the headset get cheaper. Any enthusiastic comments from Apple CEO Tim Cook about the device could stoke excitement.

“We remain comfortable with our current assumption of muted uptake for the device under 1% of Apple sales this year and next,” Rosenblatt analyst Barton Crockett wrote in a note Wednesday.

Here’s what Wall Street is expecting for first-quarter revenue and earnings, and second-quarter outlook, according to LSEG consensus estimates:

Earnings per share: $2.10
Revenue: $117.91 billion
March quarter outlook: $1.57 earnings per share on $95.95 billion in revenue

Here’s what to expect from Apple’s product lines, according to StreetAccount consensus estimates:

iPhone revenue: $67.96 billion
Mac revenue: $7.80 billion
iPad revenue: $7.31 billion
Wearables revenue: $11.39 billion
Services revenue: $23.31 billion

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Technology

Trump aims to cut $6 billion from NASA budget, shifting $1 billion to Mars-focused missions

Published

2 days ago

May 2, 2025

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Trump aims to cut billion from NASA budget, shifting billion to Mars-focused missions

The Trump administration has floated a plan to trim about $6 billion from the budget of NASA, while allocating $1 billion of remaining funds to Mars-focused initiatives, aligning with an ambition long held by Elon Musk and his rocket maker SpaceX.

A copy of the discretionary budget posted to the NASA website on Friday said that the change focuses NASA’s funding on “beating China back to the Moon and on putting the first human on Mars.”

NASA also said it will need to “streamline” its workforce, information technology services, NASA Center operations, facility maintenance, and construction and environmental compliance activities, and terminate multiple “unaffordable” missions, while reducing scientific missions for the sake of “fiscal responsibility.”

Janet Petro, NASA’s acting administrator, said in an agency-wide email on Friday that the proposed lean budget, which would cut about 25% of the space agency’s funding, “reflects the administration’s support for our mission and sets the stage for our next great achievements.”

Petro urged NASA employees to “persevere, stay resilient, and lean into the discipline it takes to do things that have never been done before — especially in a constrained environment,” according to the memo, which was obtained by CNBC. She acknowledged the budget would “require tough choices,” and that some of NASA’s “activities will wind down.”

The document on NASA’s website said it’s allocating more than $7 billion for moon exploration and “introducing $1 billion in new investments for Mars-focused programs.”

SpaceX, which is already among the largest NASA and Department of Defense contractors, has long sought to launch a manned mission to Mars. The company says on its website that its massive Starship rocket is designed to “carry both crew and cargo to Earth orbit, the Moon, Mars and beyond.”

Musk, who is the founder and CEO of SpaceX, has a central role in President Donald Trump’s administration, leading an effort to slash the size, spending and capacity of the federal government, and influencing regulatory changes through the Department of Government Efficiency (DOGE).

Musk, who frequently makes aggressive and incorrect projections for his companies, said in 2020 that he was “highly confident” that SpaceX would land humans on Mars by 2026.

Petro highlighted in her memo that under the discretionary budget, NASA would retire the SLS (Space Launch System) rocket, the Orion spacecraft and Gateway programs.

It would also put an end to its green aviation spending and to its Mars Sample Return (MSR) Program, which sought to use rockets and robotic systems to “collect and send samples of Martian rocks, soils and atmosphere back to Earth for detailed chemical and physical analysis,” according to a website for NASA’s Jet Propulsion Laboratory.

Some of the biggest reductions at NASA, should the budget get approved, would hit the space agency’s space science, Earth science and mission support divisions.

Petro didn’t name any specific aerospace and defense contractors in her agency-wide email. However SpaceX, ULA and Jeff Bezos’ Blue Origin are positioned to continue to conduct launches in the absence of the SLS. Boeing is currently the prime contractor leading the SLS program.

“This is far from the first time NASA has been asked to adapt, and your ability to deliver, even under pressure, is what sets NASA apart,” she wrote.

President Trump’s nominee to lead NASA, tech entrepreneur Jared Isaacman, still has to be approved by the U.S. Senate. His nomination was advanced out of the Senate Commerce Committee on Wednesday.

WATCH: CNBC’s interview with NASA’s astronauts on their nine months in space

Technology

Temu halts shipping direct from China as de minimis tariff loophole is cut off

Published

2 days ago

May 2, 2025

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Temu halts shipping direct from China as de minimis tariff loophole is cut off

Nurphoto | Nurphoto | Getty Images

Chinese bargain retailer Temu changed its business model in the U.S. as the Trump administration’s new rules on low-value shipments took effect Friday.

In recent days, Temu has abruptly shifted its website and app to only display listings for products shipped from U.S.-based warehouses. Items shipped directly from China, which previously blanketed the site, are now labeled as out of stock.

Temu made a name for itself in the U.S. as a destination for ultra-discounted items shipped direct from China, such as $5 sneakers and $1.50 garlic presses. It’s been able to keep prices low because of the so-called de minimis rule, which has allowed items worth $800 or less to enter the country duty-free since 2016.

The loophole expired Friday at 12:01 a.m. EDT as a result of an executive order signed by President Donald Trump in April. Trump briefly suspended the de minimis rule in February before reinstating the provision days later as customs officials struggled to process and collect tariffs on a mountain of low-value packages.

Jeff Bezos discloses plan to sell up to $4.8 billion in Amazon stock

Published

2 days ago

May 2, 2025

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Jeff Bezos discloses plan to sell up to .8 billion in Amazon stock

Jeff Bezos, founder and executive chairman of Amazon and owner of The Washington Post, takes the stage during The New York Times’ annual DealBook Summit, at Jazz at Lincoln Center in New York City, Dec. 4, 2024.

Michael M. Santiago | Getty Images

Amazon founder Jeff Bezos plans to sell up to 25 million shares in the company over the next year, according to a financial filing on Friday.

Bezos, who stepped down as CEO in 2021 but remains Amazon’s top shareholder, is selling the shares as part of a trading plan adopted on March 4, the filing states. The stake would be worth about $4.8 billion at the current price.

The disclosure follows Amazon’s first-quarter earnings report late Thursday. While profit and revenue topped estimates, the company’s forecast for operating income in the current quarter came in below Wall Street’s expectations.

The results show that Amazon is bracing for uncertainty related to President Donald Trump’s sweeping new tariffs. The company landed in the crosshairs of the White House this week over a report that Amazon planned to show shoppers the cost of the tariffs. Trump personally called Bezos to complain, and Amazon clarified that no such change was coming.

Bezos previously offloaded about $13.5 billion worth of Amazon shares last year, marking his first sale of company stock since 2021.

Since handing over the Amazon CEO role to Andy Jassy, Bezos has spent more of his time on his space exploration company, Blue Origin, and his $10 billion climate and biodiversity fund. He’s used Amazon share sales to help fund Blue Origin, as well as the Day One Fund, which he launched in September 2018 to provide education in low-income communities and combat homelessness.

WATCH: Amazon has levers to pull with tariffs