terrible news year has not damaged shares before income for Q2 last year

When Apple reports second quarter results on Tuesday after the clock, sales will be down from the same time last year. It is according to Apple's own guidance.

Apple has been pummeled in the headlines throughout the year. Apple said on January 2 that the critical holiday quarterly income would be $ 7 billion less than the previous projection because the iPhone sales had hit China.

Since then, Apple has made the rare step of canceling a previously announced advertised product, holding a remarkable campus invitation without new hardware products and missing critical details of the products it announced, and lastly settled a legal war with Qualcomm and paid it a One-time analysts believe in billions.

Nevertheless, the Apple file continues to go up.

Since Apple pre-announced disappointing results in the quarter with shrinking revenue on an annual basis, stocks rose above 43% and last year several Wall Street analysts covering Apple have also upgraded their stock price targets.

This stretch comes as it is becoming increasingly apparent that iPhone device sales are likely to fall from year to year ̵[ads1]1; but Apple stopped reporting these numbers late last year. Morgan Stanley predicts 42 million iPhones, and last year, Apple sold 52 million in the same quarter.

"There is nothing good you can say about stopping reporting unit sales," D.A. Davidson analyst Tom Forte said.

"We are looking at our model and our projections for iPhone sales, as it applies to the March quarter, we are not looking for any magic on the iPhone or China," Forte says.

This is what Wall Street expects for the quarter, according to Refinitive Consensus estimates:

• EPS: $ 2.36 vs. $ 2.73 last year
• Revenue: $ 57.41 billion against $ 61.13 billions last year

But Apple's growing stock suggests that the market is finally digesting what the company has been broadcasting for years: Apple is changing its history – it's no longer the iPhone company, even though each product accounts for over 60 % of Apple's sales. Instead, Apple sells a number of online billing services, so Apple deserves to be priced more like Amazon, Google, or Facebook.

It's the message Apple was trying to send with its march event, which was studded with celebrities and high languages ​​about the power of creativity, but does not include a new hardware product or price or release dates for most of what it was talking about.

By announcing three new online subscription services and a co-branded credit card with Goldman Sachs, Apple emphasized how many new revenue streams it could launch. Only one of the products, Apple News +, was available to consumers after the incident.

Forte called the incident "strange", but said it helped investors "think about the life after the iPhone."

"Investors have bought hook-line-and-sink into the idea that the services are going to be a fast growing number for Apple," he said.

"In our opinion, investors are still not fully appreciated by Apple's strength platform with iOS users more engaged with mobile services and using 10x Android users on mobile apps, "writes Morgan Stanley analyst Katy Huberty in an April note and points out that Apple has doubled the number of paid online services this year.

It is possible that Apple will provide some details to investors and analysts on Tuesday about how well Apple News + performs, even though it does not appear on Apple's balance sheet, as well as other data points to emphasize that its service service is growing rapidly, the only $ 10 data point per month service so far, 200,000 people signed up for the first 48 hours it was available.

A year ago, Apple reported $ 9.19 billion in service provision, including subscriptions, avg. from the App Save the distribution platform, AppleCare guarantees and money from a deal with Google to make Google the default search engine on the iPhone browser.

Analysts and investors also look at whether Apple says how much it plans to spend on return on investment. It's that time of year.

In April April, Apple announced it would spend $ 100 billion on dividends and repurchases over the next year, partly driven by the tax reform implemented in December 2017.

It also said it wanted to become "net cash neutral over time, meaning that it intends to use all the cash and transferable securities in the balance sheet.

Forte says that Apple's ROI "removes" the quarter in the event of a boy. [19659002] Morgan Stanley expects Apple to announce a 10% dividend increase and at least $ 50 billion increase in the authorized repurchase fund.

"We continue to forecast Apple to buy back $ 15-20 billion in stocks every quarter through fiscal 2021, which will reduce total diluted mid-to-high one-five percent per year and add more than $ 1.00 to EPS in fiscal policy 2020, "wrote Huberty.

Apple buys back so much stock it may not even think of a slightly lower stock price.

"The company doesn't care if their shares are not on fire, because then they can buy them back cheaper," says Forte. "Apple would like to have the shares go straight up, but they are fine because that's not the case."

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