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How Apple Shares Typically Trade Following Earnings

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How Apple Shares Typically Trade Following Earnings

Apple, Inc (NASDAQ: AAPL) is reporting its fiscal first-quarter earnings after Tuesday's close.

Benzinga took a look back at Apple’s last seven first-quarter earnings reports to look for any potential patterns in how the stock reacts.

  • Q1 2018: shares down 4.3 percent the day following the report
  • Q1 2017: up 6.0 percent
  • Q1 2016: down 6.5 percent
  • Q1 2015: up 5.6 percent
  • Q1 2014: down 7.9 percent
  • Q1 2013: down 12.3 percent
  • Q1 2012: up 6.2 percent

Apple Q1 Earnings Preview: Investors Brace For Update On Turbulent Quarter Marred By iPhone Weakness

Most initial first-quarter earnings reactions have been relatively large, and many of Apple’s most volatile trading sessions of the past eight years have happened within two days of an earnings release. The charts below show Apple’s largest single-day gains and losses of the past eight years. The dates highlighted by the red boxes indicate trading sessions that occurred within two days of a quarterly earnings report.

While most initial fourth-quarter earnings reactions have been relatively modest, many of Apple’s most volatile trading sessions of the past eight years have happened within two days of an earnings release. The charts below show Apple’s largest single-day gains and losses of the past eight years. The dates highlighted by the red boxes indicate trading sessions that occurred within two days of a quarterly earnings report.

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Here are some potential takeaways from the information outlined above:

  • Apple tends to have volatile earnings reactions, and Q1 market reactions are typically some of the biggest.
  • Apple stock has typically moved up or down more than 5 percent on the day following Q1 earnings.
  • Two out of Apples last three earnings reports have generated positive market reactions, but two out of its last three Q1 reports triggered a sell-off.

According to Optionslam.com, Apple’s seven-day implied movement based on the weekly options market is 5 percent.

Apple's stock traded around $155.86 at time of publication. The stock is down 0.8 percent year-to-date.

Posted-In: Earnings Education Previews Top Stories Trading Ideas General Best of Benzinga

 

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