Apple could see higher Q3 gross profit margin

By | July 2, 2014

Scalper1 News

With Apple’s fiscal third-quarter earnings report due July 22, investor focus is shifting from future products to how current ones are selling. Apple (AAPL) could see upside to its gross profit margin in Q3, Wells Fargo Securities analyst Maynard Um said in a research note Tuesday. Apple guided to gross margin of 37% to 38%, but Um is forecasting 38.3%, due in part to accounting-related items. Warranty accruals could drop below claims in Q3, he said. However, “this upside potential is likely to be offset by sales and marketing actions Apple likely took to start preparing the channel for the iPhone 6 launch,” Um wrote. Um expects Apple to report earnings per share of $1.27 on sales of $38.2 billion, both ahead of Wall Street estimates for $1.22 EPS on $37.9 billion in sales. That’s compared with $1.07 and $35.3 billion in the year-earlier quarter. He sees Apple selling… Scalper1 News

Scalper1 News