Apple shares dip after company warns of a possible $8 billion hit from supply constraints

Apple will report second-quarter earnings on Thursday after the bell.

Here’s what Wall Street is expecting from Apple in the second quarter, according to Refinitiv consensus estimates:

• EPS: $1.43 expected
• Revenue: $93.89 billion expected
• iPhone revenue: $47.88 billion expected
• Services revenue: $19.72 billion expected
• Other Products revenue: $9.05 billion expected
• Mac revenue: $9.25 billion expected
• iPad revenue: $7.14 billion expected
• Gross margin: 43.1% expected

Apple hasn’t provided guidance since February 2020, citing uncertainty caused by the Covid-19 pandemic. But in January, Apple CEO Tim Cook said that the company expected year-over-year revenue growth over last year’s $89.58 billion in sales.

Cook also said at the time that Apple expected supply constraints to be less severe than they were during the holiday season.

But investors are beginning to worry less about Apple’s ability to supply enough products and will look at how demand for iPhones, iPads, and Macs is holding up during deteriorating macroeconomic conditions and weakening consumer confidence.

“We believe this report is more important than usual for overall market sentiment given increased focus on consumer spending and whether higher end consumers might be weakening,” Goldman Sachs analyst Rod Hall wrote in a note earlier this week.

Apple is also in the midst of recalling its employees back to the office. Apple’s corporate employees in California started returning to the office earlier this month.

Apple will also likely give an update this quarter about how much it plans to spend on dividends and share buybacks in the next year.