Apple Earnings Preview: Revenue, Earnings Expected to Fall from Previous Quarter

Now's the time to start prepping for Apple AAPL! Don't be caught off-guard: The company releases its next round of earnings this Tuesday, July 19, 2011.

Want to get caught up before Tuesday's earnings release? We've got just what you need. Here is your everything-that-matters guide to Apple's third quarter earnings report.

Let's Do the Numbers:

Analysts are predicting a positive EPS reading of $5.72 per share and revenues of $24.72 billion. We'll know on Tuesday whether Apple has managed the estimated 161% increase in EPS and 157% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q2	Q1	Q4	Q3
EPS Estimate	$5.35	$5.38	$4.05	$3.08
EPS Actual	$6.40	$6.43	$4.64	$3.51

Stock Performance:

At last check, shares of Apple were trading at $358.02. Since January 1st, shares of Apple have given investors a return of 11%. For a full 12 months, the return has risen by 19.9%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Apple is a Moderate Buy. The strength of this rating has stayed consistent over the past three months.

Competitors:

Wondering how Apple compares to rivals in the same sector? Here are a few of the company's peers.

• Adobe Systems ADBE: Hold with a $0.40 recent quarter EPS
• Dell DELL: Hold with a $0.55 recent quarter EPS
• Google GOOG: Moderate Buy with a $7.04 recent quarter EPS
• Hewlett-Packard Company HPQ: Hold with a $1.24 recent quarter EPS

The computer company's industry has seen price/earnings growth of 0.8% during the current fiscal year.

Finally, a description of the main business areas of the company, in case you need a little refresher: Apple offers a range personal computers, mobile devices, and portable digital music and video players. The company also sells related software, services, peripherals, and networking solutions.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Apple earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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