- I think most people have heard of Apple and their products.
- Their product line and product mix isn't enormous. It's straightforward how they make money from these products. If you ask me how General Electric makes money, I couldn't tell you.
- There's always hype and buzz around Apple.
- It seems fitting since I watched the latest Steve Jobs movie tonight.
The earnings estimate for 2016 quarter 1 is $3.23/share. So this is written as "earnings per share, earnings/share". Comparing this to the 2015 quarter 1, Apple made $3.06/share.
|Apple 2015 Quarter 1 Earnings Per Share|
Yes, that is "Net Income" of ~18 BILLION dollars.
The earnings per share is estimated to be higher for 2016 quarter 1 compared to last year's 2015 quarter 1. Mathematically, the equation is "Earnings/Share = Net Income / Shares". There are a few things that make earning per share higher.
- Net Income goes up. This occurs from higher revenue, fewer expenses, or both.
- The number of shares goes down. This occurs when Apple buys back Apple stock.
- Both of these things.
Below is a table of the revenue for the 2015 quarter 1 for Apple. You can see that the iPhone was 68.6% of Apple's total revenue.
Apple 2015 Quarter 1
It will be interesting to compare what products make up what percentage of revenue for 2016 quarter 1.
I currently have 13.276 shares of Apple in my other stock brokerage account (This stock brokerage account charges $9.99 per trade). I would like to sell these shares and bring that money over to my Robinhood account that charges $0.00 per trade.
The few times I've listened to earnings reports, I usually don't know what the numbers mean. I'm hoping by doing some research on Apple, I'll understand a few numbers on Tuesday during the earnings call. I am hoping that Apple will announce a $0.52 dividend during the call.
Full Disclosure: I own Apple Stock. I am not a licensed financial advisor.