CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Apple Q1 2023 Earnings Preview: Will China's Reopening Boost Guidance?

By Justin Mcqueen

11:27, 20 January 2023

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Apple outlook
Apple outlook - Photo: Capital.com. Source: GettyImages

Estimated Earning Figures

  • EPS $1.95
  • Revenue $122.05bln

The tech giant is scheduled to announce its Q1 2023 financial results on February 2nd. As it stands, the analyst consensus is for Apple to report an EPS of $1.95 and revenue to fall for the first time in just under four years to $122.05bln amid disruptions among its major Chinese suppliers.

Over the fourth quarter, Apple shares declined roughly 6%, suffering from weaker consumer demand for its products. Consequently, analysts have lowered the company's earnings estimates and price targets. Of course, when looking at the company’s earnings, the main focal point will be the performance of its iPhone sales.

China Reopening May Boost Apple Earnings Guidance

Elsewhere, a big factor that has weighed on the company has been the persistent Covid disruptions in China. However, with China having now abandoned zero-covid policy and as such reopened its economy, this may well boost the earnings outlook for the company. In turn, earnings guidance will be a key metric to watch out for. 

Natural Gas

2.75 Price
+2.450% 1D Chg, %
Long position overnight fee -0.0735%
Short position overnight fee 0.0483%
Overnight fee time 22:00 (UTC)
Spread 0.005

US100

12,048.10 Price
+0.930% 1D Chg, %
Long position overnight fee -0.0179%
Short position overnight fee 0.0070%
Overnight fee time 22:00 (UTC)
Spread 1.8

Oil - Crude

79.41 Price
+1.960% 1D Chg, %
Long position overnight fee -0.0196%
Short position overnight fee 0.0049%
Overnight fee time 22:00 (UTC)
Spread 0.03

XRP/USD

0.40 Price
+2.240% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00318

Broker Recommendations

Apple Broker RecommendationsApple Broker Recommendations - Photo: Capital.com. Source: Refinitiv

Apple Technical Analysis

As is the case with many of the tech names, there is a sense that a lot of negativity is reflected in the price, which in turn could lead to an outsized upside reaction in the share price as the bar is set low for earnings to beat expectations. On the technical front, the trend remains tilted to the downside with support eyed at $120 before the key 200WMA at $115. For those bullish on the stock, it will be critical that $115 holds, as failing to do so opens the door to $100. Given that the 200WMA has not been convincingly broken through since 2009 I suspect this area will hold on a first test. Meanwhile, topside resistance remains situated at $140 and $150. 

Apple Chart: Weekly Time Frame

Apple Weekly ChartApple Weekly Chart - Photo: Capital.com. Source: Tradingview

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

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