Surprise fall in iPhone sales

Kristi Paul
May 3, 2017

This year, no matter what, people will likely shrug as they await the debut of the next iPhone.

Only recently returning to growth, Apple (NASDAQ:AAPL) was put to the test in its second fiscal quarter of 2017 as investors looked to see whether the company's return to growth would continue.

Today's figures came in short of our consensus estimate, which called for unit sales of 51.2 million. Analysts at UBS expect the total size of Apple's capital return to increase from the $250 billion announced a year ago (which is authorised until the end of March 2018) to $310 billion.

With that said, the iPhone 7 and iPhone 7 Plus are still pretty darn important. National Pension Service now owns 3,323,475 shares of the iPhone maker's stock worth $375,719,000 after buying an additional 267,137 shares in the last quarter. The Cupertino-based tech giant, which has beaten Wall Street earnings per share estimates in three straight quarters, has made investors tons of money over the past year, putting up more than 56% stock gains. On Tuesday, it is expected to report a 5 to 6 per cent rise in sales to $53 billion (€48.5 billion)-$53.5 billion for the quarter ending in March, as iPhone sales grow to about 52 million to 53 million units, compared with 51.2 million a year ago.

Apple's earnings report comes after Apple released a new version of its 9.7-inchiPad, and a special edition of the iPhone 7 and iPhone 7 Plus.

Shares outstanding are recorded as 5298.66 billion and total shares floated are 5243.34 billion. The company's 50 day moving average is $142.33 and its 200 day moving average is $126.02.

Visit Markets Insider for constantly updated market quotes for individual stocks, ETFs, indices, commodities and currencies traded around the world. Apple accounts for 7.4% of Flinton Capital Management LLC's investment portfolio, making the stock its largest position.

Apple's gross margin hit 38.9 percent, slightly ahead of analysts' average expectation of 38.7 percent, despite higher prices for memory chips. Rosenblatt Securities reiterated a "neutral" rating and set a $120.00 price target on shares of Apple in a research note on Monday, April 17th.

On the offline store front, Apple may open just 4 to 5 flagship outlets in various metros over the course of the next 5 to 10 years. Annual EPS Growth of past 5 years is 16.00%. Unfortunately, for investors, the chart below shows a stock that's run tremendous in the past year, so this mixed report has shares down about $3 in the after-hours. The company's market cap was closing in on the $800 billion mark for the first time before the earnings report Tuesday.

At the movement Weatherford International plc (NYSE:WFT) is under coverage by number of analysts. One analyst has rated the stock with a sell rating, nine have given a hold rating, forty-one have assigned a buy rating and one has given a strong buy rating to the company's stock.

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