AAPL is expected to report first quarter earnings tonight after the close. Q1 Capital IQ consensus calls for EPS of $3.85 (versus $3.36 last year) on revenue of $87.62 billion (+11.8% YoY). 

The current consensus is with in the company's guidance range of $84-87 billion. 

The company is expected to guide second quarter revenues where Capital IQ consensus stands at $65.62 billion. 

Looking at last quarter, iPhone shipments were 46.7 million versus 45.5 million last year. iPads 10.3 million versus 9.3 million last year. Q4 Macs 5.4 million versus 4.9 million last year. The company reported Q4 gross margin of 37.9% versus 38% last year.

  • The Street sees Q1 iPhone sales 81.5 million versus 78.3 million last year. 


  • Deutsche Bank said recent data points on iPhone sales continue to point to weaker-than-expected demand for the new iPhone models (X, 8 and 8+).
  • Mizuho said iPhone X production estimates move lower by around 8 mln units for CY17 on the back of slower-than-anticipated yield improvement. In particular, the 3D-sensing module remains the bottleneck for the X, with yield improving on OLED panels.Options Activity and Metrics


Based on AAPL options, the current implied volatility stands at ~ 32%, which is 88% higher than historical volatility (over the past 30 days). 




AAPL shares have underperformed the Nasdaq YTD with AAPL falling by 1% vs 7% gain in the index. On a positive report, look for resistance near the $170 mark. Support sits near the $160 level.

AVGO Shares have seen notable weakness in congruence with AAPL. The stock is already starting to lose its legs ahead of the print. Other semis include SWKS, CRUS, AVGO, FNSR, QRVO, IIVI.

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