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Will iPhone X Sales Lift Apple's Earnings Report?

Shares of Apple (AAPL) have slipped 3% over the last four weeks in the lead up to the tech giant's fiscal first-quarter earnings announcement on Thursday afternoon. Many investors have grown apprehensive based on reports that Apple's much-anticipated iPhone X has failed to live up to Wall Street sales expectations.

Shares of Apple AAPL have slipped 3% over the last four weeks in the lead up to the tech giant’s fiscal first-quarter earnings announcement on Thursday afternoon. Many investors have grown apprehensive based on reports that Apple’s much-anticipated iPhone X has failed to live up to Wall Street sales expectations.

With that said, Apple will still be one of the most watched companies to report this week. Despite the possibility of less than stellar iPhone sales, Apple is projected to see its Q1 earnings jump 13.7% year-over-year to $3.82 per share, based on our current Zacks Consensus Estimates.

On top of this bottom-line expansion, Apple is expected to see its quarterly revenues reach $86.02 billion, which would mark 9.8% growth from the year-ago period.

However, on top of earnings and revenue figures, investors must also pay attention to other key figures. And in Apple’s case, iPhone sales are one of the more vital metrics, as the company has become increasingly reliant on its flagship smartphone over the years.

Luckily we can turn to our exclusive non-financial metrics consensus estimate file to give investors a better understanding of where iPhone sales will be when Apple reports tomorrow.

The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.

Based on our latest consensus estimates, analysts expect total iPhone unit sales will climb from 78.290 million in the year-ago period to 79.791 million in Q1, which would mark a 1.9% gain. Last quarter, Apple sold 46.677 million iPhone units, up roughly 2.6% year-over-year.

These estimates do not represent the biggest gains, especially considering Q1 marks the first full quarter of iPhone X sales. But investors might be happy to note that the 10th anniversary iPhone sells at a much higher price point, which is expected to help lift overall iPhone revenues.

Apple is projected to report total iPhone sales of $59.313 billion in Q1, based on our latest consensus estimates. This figure would represent a roughly 9.1% expansion from the $54.378 billion Apple posted in the comparable period last year. In the fourth-quarter of 2017, Apple reported iPhone revenues of $28.846 billion, which marked merely 2.4% year-over-year growth.

For more estimates ahead of Apple’s Q1 report, check out our full guide: 3 Key Estimates for Apple's Q1 Earnings Report.

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