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