Wall Street watches to see how Apple handles global challenges

Wall Street watches to see how Apple handles global challenges

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We'll discover on Thursday how Apple did during Q1 2022. Analysts are moderatly optimistic.
Photo: Ed Hardy/Cult of Mac

Wall Street analysts harbor modest hopes for Apple’s most-recent financial quarter. They predict the company saw its revenue rise by 5% versus the same quarter of 2021.

The iPhone-maker will announce the results of the January-through-March period ahead of Thursday’s quarterly earnings call. Investors will be looking closely to see how the company is managing the ongoing chip shortage, COVID-19 lockdowns at assembly plants, inflation and other challenges.

Analysts predict moderate Q1 2022 growth for Apple

Apple’s quarterly financial results will give the world an update on how well the iPhone, Mac, iPad and other products are selling. It’s a look at the health of the company that so many of us depend on to make computers we use every day.

Early indications are that Apple is quite healthy. The analyst average prediction for Apple’s total Q1 revenue is $93.9 billion. That’s up from $89.6 billion in revenue in the same quarter of 2022. Earnings per share is expected to be $1.43, up year-over-year from $1.40.

These predictions of relatively strong revenue growth could end up hurting Apple’s share price, though. If revenue falls short of the estimate, there’s likely to be a selloff of AAPL shares. Even if the total increases.

Not that a drop in Apple’s share price would be anything new – it’s down more than 12% so far in 2022.

A check on iPhone, Mac and iPad sales

When Apple reveals Q1 2022 results, it’ll give our best insight yet into sales of iPhone 13 and other iOS handsets. Revenue is expected to be high, as iPhone continues to be very popular and the 6.1-inch iPhone is Apple’s best-selling model.

iPad will be a big question. Chip shortages prevented Apple from meeting high iPad demand in the last quarter of 2021.

MacBook sales might take an even bigger hit. People who ordered a MacBook Pro in February are still waiting months later, which certainly won’t help Apple’s Q1 2022 financial results. But the latest wave of coronavirus-related lockdowns in China didn’t start really hampering assembly of Apple products until April. So investors will be paying close attention to what CEO Tim Cook has to say Thursday about the company’s prospects for the current quarter.

Apple will announce the results of the January-through-March quarter at 1:30 p.m. PDT Thursday. This will be followed by a conference call with investors.