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Tim Cook, CEO of Apple Inc., speaks during an event at the Steve Jobs Theater in Cupertino, California, USA. USA, Monday March 25, 2019.
David Paul Morris | Bloomberg | fake pictures
Apple will report its second-quarter earnings after the bell. In February, the consumer electronics giant withdrew its quarterly guidance when the Covid-19 coronavirus spread in China.
Wall Street anticipates earnings of $ 2.26 per share on revenue of $ 54.54 billion, according to Refinitiv consensus estimates. However, it is difficult to compare the reported earnings with analysts’ estimates for Apple’s second quarter, as the coronavirus pandemic continues to cool global economies and makes the impact of earnings difficult to assess.
Apple withdrew its guidance based on the impact of demand and production in China in the early days of the pandemic. But since then, the coronavirus has spread to other countries, many of which face blockages or restrictions on movement and business. That could cool demand for Apple’s expensive phones and laptops.
Apple stores worldwide, except in China and one location in Korea, are closed until further notice. Apple’s critical engineers and designers are working from home as the Santa Clara County company headquarters has recommended until the end of May. Their annual developer conference in June, WWDC, was switched to an online format.
However, Apple continued to launch products during the March quarter, suggesting that it can stabilize its supply chain and continue its business, if not usual, near it. It released a new iPad Pro model with a $ 299 keyboard accessory, as well as a $ 999 MacBook Air laptop. In April, after the quarter ended, Apple released a new low-cost phone, the iPhone SE, which sells for $ 399.
The second quarter is typically when Apple informs investors of its annual buyback and dividend plans. In Apple’s fiscal year 2019, it spent $ 67.1 billion on share buybacks and $ 14.1 billion on dividends. Public companies are suspending buybacks, both for political and practical reasons, during the pandemic, although Apple in particular remains in a solid fiscal position, with $ 207.06 billion in cash at the beginning of the calendar year.
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