Neil Cybart Neil Cybart

My Apple 2Q23 Estimates, Expectations for Apple's Capital Management Changes, My Revised Apple Earnings Model (Daily Update)

Apple reports FY2Q23 earnings on Thursday. Today’s update contains the second half of Neil’s earnings preview. The first half is available here. The update begins with Neil’s granular financial estimates. The discussion includes qualitative explanations for each of Apple’s product categories. We then look at Neil’s expectations for what Apple will announce regarding its cash dividend and share repurchase authorization. We conclude with Neil’s updated Apple earnings model and how the model has changed over the past three months. Access to Neil’s Apple earnings model is a benefit associated with Above Avalon membership at no additional cost.

Hello everyone. Similar to previous quarters, with Apple releasing earnings tomorrow, Thursday’s update will be pushed out a day so that there is a special edition Friday version of the daily update.

Let’s jump into the second half of my earnings preview.

My Apple 2Q23 Estimates

Here are my granular estimates for Apple’s 2Q23:

  • Revenue: $95.7B (consensus: $93.0B)

  • Overall gross margin: 44.6% (guidance: 43.5% to 44.5%)

  • Gross margin (HW): 37.5%

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