Low earnings expected from Apple tomorrow

Tomorrow is the big day. Apple will announce its third quarter earnings, and for shareholders, it appears as if analysts aren’t expecting great news from the Cupertino based tech company.

While Apple is no stranger to being doubted on Wall Street (its stock performance has been pretty shaky this year), it appears that the expectations for record profits are finally catching up with investors. For the past few years, investors have become accustomed to Apple making record profits, selling unreal amounts of devices, and continuing to add to its huge excess cash pile. While Apple still has great earnings, they are no longer growing at the same rate, and analysts are starting to predict that Apple’s Q3 numbers won’t be spectacular.

Apple Q3 Prediction

It is reported that analysts expect the company to pull in $35 billion in revenue, and $7 billion in profit. While those numbers may still seem pretty great, it would actually mean that Apple’s revenue stayed the same as Q3 last year, and profits would have dropped $2 billion year-over-year. Below is CNN’s take on the prediction:

That’s a nasty development for a company that was regularly posting startup-like profit and sales growth as recently as a year ago. Between October 2009 and March 2012, Apple doubled its quarterly earnings in eight out of 10 quarters. Apple’s sales grew by more than 50 percent in nine of those quarters.

While the figures are still great, they are a step backwards from the standard that Apple set. This isn’t a bad quarter for the company, but in the world of Apple, its as close to a bad quarter as you can get. What do you think of the predictions? Could this be the “beginning of the end” for Apple? I think that people that believe that Apple is crashing are wrong, but who knows? Maybe I’m the one that has too much faith in Tim Cook and Co. Let us know what you think by dropping your opinions in the comments section below!

Source: CNN, TUAW

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