Subscribe in a reader Apple reported its first quarterly earnings decline in nearly a decade in April, and investors since then have been baking in a fair amount of weakness for the June period. It's expected to report another drop in earnings along with flat sales on Tuesday afternoon, as the iPhone 5 faces stronger competition from newer smartphones, with some consumers still flocking to older, lower-priced models.
For the June period, Apple is expected to report earnings of $7.34 per share on revenue of $35 billion, according to consensus estimates, it earned $9.32 per share on revenue of $35 billion for the same period last year. Apple itself projected gross margins in the 36%-37% range for the period. The company has not reported a quarterly gross margin below the 36% mark since the '09 March quarter.
On the technical side, the $380/$390 level looks like it has formed a 'Double Bottom' and most of the selling has been seen. With reasonable expectations, low sentiment and compelling valuation traders/investors are looking for some positive news to move the stock.
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http://video.cnbc.com/gallery/?video=3000185042
Apple's Gross Margin's, which ITZ highlighted to watch as a key metric,came in at 36.9%
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