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Can Apple Music Help Boost Apple Q4 Revenues?

At a time when many tech giants, including Facebook FB and Google GOOGL, are under scrutiny and might soon face tougher regulations, Apple AAPL is drawing attention as iPhone enthusiasts gear up for Friday’s release of the iPhone X.

However, Apple investors have more pressing concerns on their minds before they turn to iPhone X sales, as the company is set to release its fourth-quarter earnings on Thursday, Nov. 2. The iPhone giant’s Q4 earnings won’t even reflect the sales of the highly anticipated 10th anniversary iPhone—or even a majority of new iPhone 8 sales.

Still, right off the bat, investors should be pleased to know that based on our current Zacks Consensus Estimates, Apple’s Q4 earnings are expected to gain over 12% to reach $1.87 per share. On top of that, the company is projected to post revenues of $51.17 billion, which would mark a 9.22% year-over-year jump.

Yet, most savvy investors know that you often have to look beyond earnings and revenue to gain a more complete understanding of a company’s current health. Luckily, we can use our non-financial metrics file to better prepare ourselves for what to expect from Apple’s fourth quarter.

These important stock drivers are from our exclusive non-financial metrics consensus estimate file. These estimates are updated daily and are based on the independent research of expert stock analysts. Learn more here>>>

According to our current non-financial metrics consensus estimates, Apple’s revenues in the Greater China region are set to gain 1.25%. What’s more, all-important iPhone sales are set to climb 2% year-over-year to hit 46.423 million.

These are good signs, but Apple investors will want to know how the company is projected to grow in a business segment that has become more and more important.

Apple’s Services business is increasingly important in the digital age, where the sheer amount of internet-connected devices makes the opportunity to sell services easier than ever. The company’s Services revenues have grown at an almost 20% rate in each of Apple’s first three quarters.

And now, investors should be glad to know that this Services revenue growth is projected to continue. Based on our current consensus estimates, the company is expected post Services sales of $7.613 billion, up more than 20.3% from the prior-year quarter.

One important sector of Apple’s Services business that is set to account for a large chunk of this growth is Apple Music.

Apple’s streaming music service already boasts more than 40 million users. Now, Apple Music—the company’s answer to Spotify—will help Apple transitions away from its now outdated iTunes platform and compete long-term in a streaming industry that seems poised to expand.

For more stock-moving estimates ahead of Apple’s Q4 report, check out our full guide: 3 Key Estimates for Apple's Q4 Earnings Report.

And make sure to check back here for our full analysis of Apple’s actual results later this week!

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