On Monday, we will have Apple (AAPL) reporting earnings. The estimate is for $1.31 EPS and $39.8 billion in revenue. The big take away from AAPL’s earnings is going to be their gross margins and guidance. Analysts want to see how strong the margins will be for the iPhone 6. A big problem with the iPhone 5 was how it diminished AAPL’s margins. I have my own thoughts on what I believe AAPL will report and how the stock will move.

Over the last year, AAPL has gone through with a enormous share repurchase program. The effect has been seen by a sudden growth in EPS. When AAPL reported earnings in April and July 2014, EPS grew by 15% and 18% respectively. In my opinion, part of the growth was due to the buyback program. Now what do I expect AAPL to release?