Apple (AAPL) Earnings Preview: What to Look for

Apple (AAPL) is scheduled to report earnings for its fiscal year 2015, second-quarter on Monday after closing bell. Deutsche Bank (DB) previewed the iPhone maker’s Q2 results Thursday. In its report, the banking giant raised their AAPL 12 month-case base estimate to $125 from $110 noting they expect another strong iPhone quarter for the company. They also revised their iPhone unit estimates to 60 million up from 55 million. However, and despite the firm’s expectations for strong results in the quarter, they said their checks suggest 2Q sales growth are expected to decelerate from here as the iPhone cycle wanes. For the Apple Watch, the DB team said they don’t view the wearable gadget as a catalyst on results until fiscal 2016.

Looking ahead, the firm is modeling $2.27 per share for the March quarter, while the Street is projecting $55.93 billion in revenue and $2.15 per share. Apple guided for between $52 and $55 billion in revenue.

AAPL shares are currently priced at 17.64x this year’s forecasted earnings, compared to the industry’s 27.79x earnings multiple. The company’s current year and next year EPS growth estimates stand at 35% and 7.80% compared to the industry growth rates of (1.70%) and 2.90%, respectively. AAPL has a t-12 price/sales ratio of 3.78. EPS for the same period registers at $7.39.

Apple shares have advanced 5.59% in the last 4 weeks and 15.77% in the past three months. Over the past 5 trading sessions the stock has gained 4.43%. Shares are up 18.49% this year.

The Cupertino, Calif.-based company, which is currently valued at $758.85 billion, has a median Wall Street price target of $145.00 with a high target of $185.00. AAPL was up 63.67% year-over-year as of the close of trading on Friday.

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