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Apple (AAPL) is expected to report Q2 earnings after the market close on Wednesday, April 20, with a conference call scheduled for 5 pm ET.

Guidance

The consensus estimate is $5.36 for EPS and $23.34B for revenue, according to First Call. Apple is expected to report strong earnings growth for Q2 with the iPhone and iPad driving much of the upside. Apple's stock has languished lately and it remains down about 6% since the Japanese crisis on concerns about the company’s supply chain. There have also been concerns about possible production shortages of the new iPad 2. Also, that the company won't update the iPhone this summer with speculation that the next iPhone will go on sale in September. Apple traditionally gives a highly conservative outlook and some believe an outlook that's tighter than usual may indicate some challenges in the supply chain. Most expect the iPhone to be a strong driver of growth with unit shipments jumping by 86% to 16.25M units. Part of that will likely come from the expansion of the device’s carrier base in the U.S. with its launch at Verizon in early February. Sales of desktop and laptop Mac computers are expected to grow by 22% to 3.6M units for the period. The iPad will also be a strong driver of growth. Analysts expect unit shipments of nearly 6.3M, according to consensus estimates. At that level, iPad shipments would come in below the 7.33M units sold in the December quarter.

Analyst Views

Looking forward: Peter Misek of Jefferies in a recent note said he expects iPad shipments to come in line with consensus targets and a “possible upside” for the iPhone. “We expect Q3 guidance below consensus and gross margin pressure due to Japan, but we believe this is priced into the stock.” He maintained his buy rating on the shares.

Source: Earnings Preview: Apple