Apple Earnings Preview: Can AAPL Beat the Low Expectations?

Apple Earnings Preview: Can AAPL Beat the Low Expectations?

By:Mike Butler

Apple Earnings Expectations

When does Apple report Q2 2023 earnings?

Apple (AAPL) reports quarterly earnings on May 4th after the market closes, and both revenue and earnings per share (EPS) expectations are lower than the previous quarter. This brings an interesting narrative to the table, as the tech giant could either blow the low expectations out of the water or come in as expected – how the market perceives this information will be interesting to witness.

Apple’s EPS is expected to come in at $1.43, on an estimated $92.84 billion in revenue.

AAPL Stock Performance This Year

AAPL Stock Performance This Year

AAPL has surged almost 40% from the start of the year, with very few blips on the radar while almost doubling the performance of the NASDAQ ($QQQ) in the same period – the stock has climbed from $130.28 to $170.35 on May 2nd - will the stock continue to climb higher or falter with lower earnings expectations from the previous quarter?

Apple (AAPL) Earnings Expected Move

Based on the implied volatility of the weekly options cycle, we can see what the market expects from AAPL through Friday – the expected move for the rest of the week is +-$5.60:

AAPL Earnings Expected Move

With such a low expected move relative to the closing stock price of $168.54 on May 2nd, we can deduce that the market isn’t really expecting a big move from this announcement – this is unlike some of the other tech stocks that have already reported.

This earnings announcement does account for about 50% of the expected range through June 16th, which is a large chunk given the circumstances.

The options market expects AAPL to have a range of +-$27.21 through mid-December.

Apple (AAPL) Earnings Preview Summary

  • Apple stock reports earnings on May 4th after the market closes at 3pm CST
  • Earnings per share (EPS) are expected to come in at $1.43
  • Quarterly revenue is expected to be $92.84 billion
  • The option market’s expected move for the week is +-$5.60 which contains the earnings announcement
    • This is just over 3% of the stock price, which is relatively low for an earnings announcement

Join Mike on Options Trading Concept Live every trading day from 11a-12p CST for a look at earnings trades, options strategy & concept discussions and more!

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.