Talking Numbers

3 things investors need from Apple earnings

Talking Numbers

As the tech giant reports today, what three things does it need to push its stock back up?

The whole world is waiting patiently for the big announcement. No, not the name of the new royal baby but Apple’s earnings announcement.

The tech giant is expected to have revenue a little less than $35.1 billion for the quarter, just 0.2% higher than last year’s. Meanwhile, earnings are actually expected to shrink. While a year ago this quarter the earnings were $9.32 per share, Wall Street is expecting $7.32 now.

According to Birinyi Associates, Apple has beaten expectations 93% of the time since 2004. However, there’s also the possibility the Cupertino-based company will disappoint investors the same way rivals Google and Microsoft did last week. Such happened last year for Apple when earnings were over $1 per share less than expected.

And, for those who like playing such odds, Birinyi also says, “Regardless of whether the stock is higher or lower after the report, the next day from the open to the close AAPL trades lower 67% of the time for an average loss of 0.5%.”

Nonetheless, the company is sitting on piles of cash and that’s expected to remain. In its last report, Apple said it has over $12 billion in cash and cash equivalents alone plus billions more in current and long-term assets. Meanwhile, it has no long-term debt.

The stock is up almost 3% over the last month, but down more than 22% since the start of 2013. Since its record peak back in September, Apple shares are down almost 40% while Google is up 24%.

So, what are investors looking for as earnings are released today? Talking Numbers contributor Enis Taner, Global Macro Editor at RiskReversal.com, says there are three things needed from Apple.

Meanwhile, Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, says that there are key price levels traders should be aware when putting money on this name.

To hear Taner’s list of three things that can help Apple and to find out Ross’ technical levels on the stock, watch the video above.

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