For Cues On Apple's Upcoming Q1 Results, Watch This Key Supplier's Earnings Print Tonight, Says Munster

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Apple Inc. AAPL spot supplier Taiwan Semiconductor Manufacturing Company Limited TSM is scheduled to study its fourth-quarter results on Thursday.

What Happened: TSMC’s guardant guidance volition person a measurable interaction connected the market’s presumption astir Apple’s March 4th commentary, Loup Fund’s Gene Munster said successful a threaded tweet.

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Based connected the monthly information released by the Taiwanese foundry, Munster expects fundamentally in-line gross for Apple’s December quarter. Earlier this week, TSMC reported December gross of $6.32 billion. Combining the monthly information released by the company, the quarter’s gross would beryllium astatine $20.55 billion, astir successful enactment with estimates.

Munster noted that successful the June quarter, TSMC’s gross was up 44% and Apple’s iPhone revenue was up 3%. While the former’s gross roseate 43% successful the December quarter, the statement forecast for iPhone gross is simply a 2% year-over-year decline, the money manager said.

There isn’t apt to beryllium an upside owed to the timing spread betwixt erstwhile TSMC sells to Apple and erstwhile the Cupertino-based institution sells a phone, Munster said. The expert noted that astatine the extremity of the quarter, iPhone Pro models inactive had a 2 weeks pb time. The December 4th iPhone results should beryllium considered successful discourse with the March 4th guidance, helium added.

Why It’s Important: Apple’s December 4th was marred by accumulation disruptions astatine the main China iPhone assembly works of its declaration shaper Hon Hai Precision Manufacturing Company Limited HNHPF. The institution warned of shortfalls successful Pro shipments successful aboriginal November, citing the disruption.

Wedbush analyst Daniel Ives estimated that the China concern whitethorn person outgo Apple 10-15 cardinal units successful shipments in the cardinal vacation quarter.

Apple is scheduled to study its quarterly results connected Feb. 2 aft the markets close. Analysts presently expect the institution to study net per stock of $1.97, down from $2.1 successful the year-ago quarter, and gross of $122.56 billion, down 1.10%.

Price Action: Apple shares closed Wednesday’s league up 2.11%, astatine $133.49, according to Benzinga Pro data.

Read Next: Apple In A Rush To Diversify iPhone Production Out Of China — Analyst Says Hold Your Horses, It Won't Be That Easy

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