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- Apple reports fiscal fourth-quarter earnings after the closing bell on Thursday.
- The company is expected to report revenue of $94.36 billion.
- Apple’s stock is up about 19% in 2024.
rates Apple at “Buy” with a $275 price target.
Wedbush analyst Dan Ives isn’t budging from him bullish view on Apple heading into the company’s financial results.
He argues that the iPhone is on the verge of a supercycle as consumers upgrade their devices to get access to Apple Intelligence features, and Apple will become the first $4 trillion company in 2025.
“We expect a strong iPhone performance for the September quarter and expect a relatively bullish December iPhone demand commentary from Cook & Co. despite many of the bears recently yelling fire in a crowded theater on the strength of iPhone 16 sales,” Ives said in a note on Sunday.
Ives says that bearish views on Apple fail to appreciate its installed base of 1.5 billion iPhones that will eventually need to be replaced, as well as the growing Services business that helps monetize the massive user base, and the potential for Apple to be the gatekeeper of AI technologies for a large group of consumers.
Wedbush rates Apple at “Outperform” with a $300 price target.
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JPMorgan expects Apple to report a strong fourth-quarter earnings report that will likely beat revenue and profit estimates but that it will also disappoint with weaker-than-expected guidance for the holiday quarter.
“Sell-through for iPhone 16 series started off slower than iPhone 15, and while momentum has improved in recent weeks, the magnitude of the improvement is still putting volumes modestly below last year,” JPMorgan analyst Samik Chatterjee said in a Monday note.
Like many analysts on Wall Street, Chatterjee is looking for evidence that AI features will drive a bump in iPhone sales.
JPMorgan rates Apple at “Overweight” with a $265 price target.
4th quarter
- Revenue estimate: $94.36 billion
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Products revenue estimate: $69.15 billion
- IPhone revenue estimate: $45.04 billion
- Mac revenue estimate: $7.74 billion
- IPad revenue estimate: $7.07 billion
- Wearables, home and accessories estimate: $9.17 billion
- Service revenue estimate: $25.27 billion
- Greater China rev. estimate: $15.8 billion
- EPS estimate: $1.60
- Adjusted EPS estimate: $1.60
- Operating cash flow estimate: $34.66 billion
- Total operating expenses estimate: $14.35 billion
- Gross margin estimate: $43.44 billion
- Cash and cash equivalents estimate: $26.04 billion
- Cost of sales estimate: $50.81 billion
- Total current assets estimate: $145.08 billion
- Total current liabilities estimate: $139.88 billion
Source: Bloomberg
