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After that disastrous end to 2018 – one that saw Apple shares plunge more than 30% in the final 3 months of the year, tumbling from a record peak of $233.39 in early October – the Dow Jones giant has gotten off to an electric start to 2019.

Initially opening with a sharp decline on the first day of trading, the company has since gone on to romp ahead, its momentum only once or twice flagging in the last few months. Apple shares now sit at a current price of $207.52, a near 6-month high and a 34% improvement on where it began the year.

This rise was substantially aided by Apple’s Q1 update at the end of January.

Though revenue fell 5% year-on-year to $84.3 billion, that was ahead of the $83.97 billion forecasts by analysts. Earnings per share came in at a record $4.18, a smidge above the $4.17 expected; iPhone revenue, on the other hand, did miss estimates, if only just, at $51.98 billion.

As for the second quarter, Apple is expecting revenue to arrive between $55 billion and $59 billion, which at a mid-point of $57 billion would be a 6.7% reversal against the same time last year. Analysts, meanwhile, are expecting diluted earnings of around $2.40 per share.

Attention will be paid to the minutiae of the statement, of course, alongside its forecasts for Q3.

iPhone revenue, which is 60% of the firm’s total, is potentially set to fall 10% year-on-year; the Services division, which is now the 2nd biggest business, is set to see revenue rise 16%, aided by the news that Apple Music recently overtook Spotify in terms of paid subscriptions in the US.

Word on how much its TV streaming service will cost, or when it will launch – details omitted from March’s announcement – will also be welcome.

Apple share have a consensus rating of ‘Hold’ alongside an average target price of $201.22.

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.


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