Apple’s 3Q22 Earnings Report: What We Anticipate

Apple’s third quarter for 2022 closed June 28, and its latest earnings call is coming up. On July 28, the Cupertino-based tech giant will report on how well it fared ongoing COVID-19 disruptions, consumer spending trends, and supply chain concerns. Let’s take a look at what we expect from Apple’s 3Q22 earnings report.
Apple Gave No Revenue Guidance, but Warned of Potential Downturn
During its last earnings call, Cupertino once again declined to offer any revenue guidance for 3Q22. This has become the company’s norm since the COVID-19 pandemic began, so we weren’t surprised. Apple did warn investors and analysts, however, that supply chain constraints could cause a $4 billion to $8 billion revenue shortfall.
Much of this was owed to the zero-tolerance policies in China related to the spread of COVID-19. Major tech manufacturing hubs in China had to weather lockdowns and factory closures for much of the quarter. Thanks to Foxconn’s and others’ abilities to continue operations under a “closed loop” system, impact for Apple was minimized.
Despite the lack of revenue guidance, Cupertino also said it expects gross margins between 41.5% and 42.5%, with operating expenses running between $11.1 billion and $11.3 billion.
Analysts Expect Apple’s 3Q22 Earnings Report to Match or Outperform Expectations
In spite of all the struggles the tech industry has experienced, analysts remain optimistic about Apple’s 3Q22 performance. Many expect Cupertino to either match or outperform expectations, even though consumer spending has decreased and supply chain woes continued.
Indications are showing continued strong demand for the entire iPhone 13 lineup. Additionally, this earnings report is from the first full quarter since Apple began shipping the Mac Studio, Apple Studio Display and third-generation iPhone SE. On top of that, Cupertino started shipping a new MacBook Pro with the M2 chip during that same quarter.
With all of that in mind, analysts are looking for Apple to report roughly $82 billion in revenue for 3Q22 (via AppleInsider). June quarter earnings-per-share should be in the neighborhood of $1.16, they predict. Only Morgan Stanley’s Katy Huberty expects less. In her final note covering Apple, Huberty states an expectation of $80.6 billion in revenue.
Apple’s 3Q22 earnings call is scheduled for July 28 at 2 p.m. Pacific time, after the markets close.
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