Apple shares nudging higher ahead of first quarter numbers

Shares in the globe’s most valuable firm Apple (NASDAQ:AAPL) were nudging higher on Tuesday ahead of the keenly anticipated quarterly numbers to be revealed after the close

Yesterday shares hit  a new record as they went, for the first time, above $146. They are currently up 0.35% to $147.10.

• READ – Apple to benefit from Donald Trump’s tax holiday plans

The tech behemoth is due to report after the close on Tuesday and its performance will be closely scrutinized by investors and analysts alike – as to what it says about the global economy and also about the technology sector generally.

Revenue of $53bn expected..

It is expected to report $2.01 per share on around $53bn of revenue, which is still a 5% to 6% increase but this rate of growth has slowed from a few years ago as iPhone sales lessen. The profit is expected to come in at over $10mln.

As a sign that time really does fly, there will be a tenth-anniversary edition of the iPhone released in September.

Some analysts expect the firm to report flat or even declining sales of the iPhone.

Also grabbing attention ahead of the big announcement was news that its cash pile has grown to more than an eye-watering $250bn, as it holds more reserves overseas in anticipation of a Trump tax holiday, which it hopes will mean it can bring it back to the US.

Trump’s tax plan also a theme….

Apple will save US$43.5bn in taxes on the President’s plan to encourage US firms to bring offshore cash piles back to American soil, according to recent research by Oxfam.

The US President has vowed to offer a one-off tax holiday to companies if they repatriate profits held offshore. Trump proposed a 10% tax on repatriated money instead of the statutory rate of 35%.

The move would save the 50 biggest American corporations at least US$300bn, Oxfam’s research showed.

Last September, Apple’s chief executive, Tim Cook, said the company had set aside “several billion dollars for the US for payment as soon as we repatriate” some or all of the money.

Trump promised his one-off 10% tax rate during his 2016 presidential campaign. He argued the proposal would bring back trillions of dollars from American businesses that is currently located overseas.

Story by ProactiveInvestors