Despite a declining stock and a number of ominous warnings from suppliers, analysts still expect solid earnings from Apple, when the world's most valuable company reports after the bell Tuesday.
The Cupertino California-based company is expected to post revenue of $76.6 billion, up from $74.59 billion in the year-ago period, according to analysts surveyed by Thomson Reuters. Earnings are expected to be $3.24 a share, up from $3.06 a share a year earlier.
While most of Wall Street is still overwhelmingly bullish on the stock — analysts in the aggregate expect the stock to rise nearly 40 percent over the next 12 months, according to FactSet — investors apparently don't agree. Apple's shares have slid 25 percent from the company's 52-week high of $134 on April 28, and are down more than 12 percent over the past month.
At least some of that skepticism has to do with macroeconomic trends that aren't specific to Apple. The market for smartphones is extremely competitive and widely seen as at least somewhat saturated. Experts also believe that softness in China's economy could dampen demand for Apple's products. Also, many analysts see a possibility that iPhone sales decline year over year for the first time.