Numbers to Consider Ahead of Apple's Second Quarter FY 2016 Earnings Call

In the second quarter of 2015, Apple posted quarterly revenue of $58 billion and quarterly net profit of $13.6 billion. That compares to revenue of $45.6 billion and net profit of $10.2 billion in 2Q14, a sizable increase. Gross margin was 40.8 percent compared to 39.3 percent in 2014. Apple’s international sales accounted for 69 percent of the quarter’s revenue. As of two months ago, Apple’s guidance for revenue in the second quarter of 2016 was between $50 and $53 billion.

Cupertino sold 61.2 million iPhones during the second quarter of 2015. Guidance from Apple calls for declining handset sales for the same quarter of 2016, which is why the company is expecting lower revenue than the same timeframe of 2015. The iPhone has historically been Apple’s leading revenue generator, so it’s little surprise that a fall in handset sales would impact Cupertino’s bottom line for the quarter. The consensus on Wall Street is calling for between 50.87 and 52.69 million iPhones sold during the second quarter of 2016.

Last year during the second quarter, Apple sold 12.62 million units of the iPad. Wall Street is looking for that number to decline once again, despite the iPad Pro, with a consensus of between 9.84 and 10 million units sold in the second quarter of 2016.

Here we have Apple’s stock price as of this writing, falling from yesterday’s close at $105.08. Cupertino will still report a sizable profit for the second quarter of 2016, but the decline in revenues is already spurring a slight sell-off of Apple stocks. Will it continue? Perhaps for a short while, but there’s no telling how Wall Street will react once the numbers are officially revealed.

The earnings call will take place today, April 26, at 2 p.m. PST. You can access it via audio webcast at this link. You’ll need to have an iPhone, iPad, or iPod touch with Safari on iOS 7 or later, a Mac with Safari 6.0.5 or later on OS X 10.8.5 or later, or a PC with Edge on Windows 10.