Apple results disappoint Wall Street

This week’s major business events: BP results; Irish unemployment rate

Apple is expected to show off its next iPhone with its new OLED display at the Worldwide Developers Conference in June. Photograph: Yuya Shino/Reuters

Apple is expected to show off its next iPhone with its new OLED display at the Worldwide Developers Conference in June. Photograph: Yuya Shino/Reuters

 

Monday

Results: BP, Olympus.

Indicators: US manufacturing PMI, prices, employment (Apr).

Tuesday

Results: Apple, Aerie Pharmaceuticals, Geberit (Q1), BNP Paribas, Hilton Worldwide, Hugo Boss, Mastercard, Mondelez International, Pfizer.

Indicators: Irish manufacturing PMI (Apr); Euro zone manufacturing PMI (Apr), unemployment (Mar); UK manufacturing PMI (Apr); German manufacturing PMI (Apr).

Meetings: International Chambers of Commerce (ICC) Ireland hosts morning with Alexis Mourre, president of ICC Court of Arbitration (Dublin Dispute Resolution Centre, Dublin 7); Bovis Homes AGM (details to be confirmed).

Concern prior to Apple results

Apple is due to report second-quarter results on Tuesday and there are concerns things may not be quite as good as expected at the company that seems to be unable to do wrong.

Both JP Morgan and UBS have told investors results could fall short although buy ratings have remained in place given the optimism surrounding the next iPhone.

In a statement reported by CNBC, JP Morgan said it remained bullish on the prospects of the new phone “given what we believe is unprecedented pent-up replacement demand” combined with expectations for a materially different product later this year.

“Having said that, we believe FQ3 guidance could be somewhat weak assuming Apple also believes consumers will want to wait for new product availability this fall,” it said in a note to clients.

It believes there is a “better-than-normal chance” Apple will show off the next iPhone with its new OLED display at the Worldwide Developers Conference in June.

In January the company said it had recorded new highs in sales of iPhones, Mac, Apple Watch and Apple Services during its all-important fiscal first quarter.

However, sales of iPads were down 19 per cent year-on-year and, despite the reported rise in watch sales, the “other product” category that includes the device saw sales slip 8 per cent on last year.

Wednesday

Results: LafargeHolcim, Alibaba Group, Anheuser Busch Inbev, Avis Budget Group, Carlsberg, Carlyle Group, Estée Lauder, Facebook, Fitbit, Garmin, Groupon, HSBC Holdings, Kraft Heinz, Royal Dutch Shell, Statoil.

Indicators: Irish unemployment rate (Apr); Euro zone GDP growth rate (Q1), PPI (Mar); UK construction PMI (Apr); German unemployment (Mar/Apr); US mortgage applications (Apr), non-manufacturing employment and PMI.

Meetings: Paddy Power Betfair interim management statement; ECB non-monetary policy meeting .

Thursday

Results: Kerry Group, Kinsale Capital Group, Air France KLM, Audi, Kellogg, Revlon, Siemens.

Indicators: Irish services PMI (Apr), industrial production (Mar); Euro zone composite and services PMI (Apr), retail sales (Mar); UK mortgage lending (Mar), consumer credit (Mar), net lending (Mar), services PMI (Apr); German composite and services PMI (Apr); US exports and imports (Mar).

Meetings: Project Management Institute conference (Aviva Stadium, Dublin); RTÉ Mojocon international media conference on mobile content creation and new technology (Radisson Blu, Galway).

Brexit on the agenda

It is likely to become the most common theme of business conferences in the next two years and on Thursday the Project Management Institute conference will tackle the thorny, if still entirely unpredictable, issue of Brexit and its effect on the economy.

Up to 400 members of the Irish chapter are expected at the Aviva stadium where speakers will include Cathriona Hallahan, managing director of Microsoft Ireland and Féilim Harvey, partner at PwC, heading up portfolio and programme management practice in Ireland.

The PMI is forecasting a 12 per cent year-on-year growth in the number of project managers, or about 20,000 in Ireland by the end of 2020, right in the middle of the Brexit storm.

“It’s clear that without effective leadership, the uncharted territory that is Brexit has the potential to cause serious damage for unprepared businesses,” said Niall Murphy, Ireland chapter president, ahead of the meeting.

The PMI here has almost 1,200 members while there are currently over 50,000 people employed in sectors including IT, construction, pharmaceuticals and manufacturing.

Féilim Harvey said Brexit was creating particular uncertainty around exchange rates, supply chain, access to markets and, for certain financial services organisations, continuing access to the single market. “We are heading into extremely turbulent times,” he said. More on Thursday.

Friday

Results: Smurfit Kappa Group, Kennedy Wilson Europe, IAG, Amadeus IT Group, Moody’s.

Indicators: Irish consumer confidence (Apr); Euro zone retail PMI (Apr); German construction PMI (Apr); US unemployment (Apr).

Meetings: Galway Chamber Energy Conference 2017 (Galway Bay Hotel, Salthill).