Apple Inc. (NASDAQ: AAPL) – Sample Apple earnings: on the way to $ 100 billion in revenue amid strong iPhone 12 adoption

Apple Inc (NASDAQ: AAPL) is on track to report an excellent quarter, following the iPhone sales trend. The company is due to release its first quarter results for fiscal year 2021 on Wednesday after the market closes.

Record revenue, EPS cash: Analysts, on average, estimate that Apple will report first-quarter earnings of $ 1.41 per share on revenues of $ 103.28 billion.

Gene Munster, of Loup Venture, is above consensus, with the famous Apple analyst estimating a 19% revenue growth year on year vis-à-vis the 16.70% growth that Street is modeling.

The company’s revenues are expected to exceed the $ 100 billion mark for the first time in its history, with the strength of the iPhone sustaining much of the positive.

Apple launched its newest iPhone iteration, dubbed the iPhone 12, at the end of last year. The company had a delayed, as well as phased, launch of the iPhone 12, which came in four variants. All four models are enabled for 5G.

Related link: 10 things Apple investors might want in 2021

Other metrics: IPhone versions in the quarter are estimated at around 90 million, Wedbush analyst Daniel Ives said in a note, citing supply chain estimates.

Munster sees the share of iPhone revenue in total revenue increasing to 59% in the first quarter, compared to the typical 50% range. He expects iPhone revenue to increase 16% to $ 64.9 billion, compared with Street’s estimate of $ 59.4 billion.

Service revenue, which represents 14% of sales, may have increased 18% year on year, to $ 15 billion, estimates the analyst.

Munster expects Apple to end the December quarter with total cash of $ 185 billion, comprising $ 112 billion in debt and $ 73 billion in net cash.

Outlook forward: For the March quarter, Apple is expected to report EPS of 91 cents on revenue of $ 74.54 billion. Consensus estimates for fiscal year 2021 point to EPS of $ 4.03 on revenue of $ 318.9 billion.

Munster sees the acceleration of digital transformation serving as a fan for Apple’s revenue growth in the coming years.

Ives said Apple has the potential to sell more than 240 million units of iPhones in 2021, which could surpass the previous record of 231 million units set in fiscal year 2015.

AAPL stock: Apple shares ended 2020 with a gain of about 82% to $ 132.69. Having experienced some weakness at the beginning of the year, the stock has returned and is being traded with a modest gain of 4.8% in the accumulated period of the year.

Apple’s valuation surpassed the $ 2 trillion mark in August and, if the company continues to operate at that pace, a $ 3 trillion market capitalization is on the horizon in the next 12 months.

Apple’s stock ended Tuesday’s session at $ 143.16.

(Shiwa ID photo on Unsplash)