There is an old Wall Street saying: “The trend is your friend.” If this is true, when the tech giant announces its third-quarter earnings next week, analysts are primarily counting on Apple (AAPL) for another double digit. quarter Revenue growth.
For those who keep their scores, AAPL has surprised analysts with its stable double-digit performance in the last two quarters and three of the last four quarters. In the second fiscal quarter alone, AAPL easily beat Wall Street expectations, with revenue of $ 23.6 billion, and revenue soared 54% to $ 89.6 billion. Second-quarter iPhone revenue increased 65.5% to $ 47.94 billion, beating Wall Street expectations by about $ 6 billion.
This has led some analysts to predict that this year’s net profit may exceed $ 70 billion, which is almost a third more than last year, according to some estimates.
Of course, when entering the second fiscal quarter earnings report in April, Wall Street has no doubt that AAPL’s performance will be better than China’s somewhat moderate performance in the year when COVID19 hit supply and demand. APPL announced that its earnings per share in the most recent quarter was as high as $1.40, while the consensus estimate for this quarter is $1 per share. Talk about setting high standards.
Data source: Nasdaq, Standard & Poor’s Dow Jones Indices. Chart source: TD Ameritrade’s thinkorswim® platform.
Figure 1: The return of the child. After a very bumpy start this year, including a 20% correction… [+] Data source: Nasdaq Index, S&P Dow Jones Index. Image source: TD AMERITRADE THINKORSWIM® platform.
is better for you
With mixed results, Google stock will hardly change
Why Novavax’s stock should continue to rise
Robinhood IPO: Still a bad bet for risky investors
Feel the love
“We feel Very good, given the results in the first half of the fiscal year,” Chief Financial Officer Luca Maestri told the Wall Street Journal after the announcement of the second quarter results. “And obviously, as the economy begins to reopen, especially those with enough vaccines, we obviously think this should be a good thing.”
Even though new strains of the COVID
virus seem to be spreading around the world, do you Still feel the same? Most analysts think so because of the love clubs that have stormed a large number of AAPL products in recent months and the widespread belief that a mixed work model (work at home part of the time) can boost product sales.
In Maestri’s idea a quarter ago, a mixed work environment could also promote sales of AppleCare, its extended warranty services, and advertising, both of which were affected by the pandemic. Then there is the service sector, which seems to be a new way for AAPL to change the rules of the game. Revenue in the second fiscal quarter increased by 27% to $16.9 billion, which was 10% higher than the street consensus. Due to the tiered pricing and expansion of Apple Arcade and other companies, paid subscriptions for services such as Apple TV, Apple Music and the latest Apple Fitness + reached 660 million in the most recent quarter.
Obviously, analysts stated that the company is satisfied with its future forecasts, increasing its cash dividend by 7% to $0.22 per share, while increasing its share repurchase by another $90 billion.
Yes, this is a B, in billions, and AAPL is leading the way in corporate repurchases. JPMorgan Chase JPM 0.2% (JPM) estimates that as the economy recovers, it may reach $1 trillion this week. But that is another day’s story.
After the start and stop for most of the year, AAPL’s stock price began to gain momentum in June, setting a record high of $150 this month, despite the bumps in recent days. In June, Samik Chatterjee of JPMorgan Chase told his clients that he thinks “the stock setting for the second half of this year is very attractive,” according to his notes.
When the AAPL is expected to launch the iPhone 13 this fall, it cited “relatively low investor expectations,” “with years of 5G replacement rate and a larger installation base, it supports higher investor expectations than today. Annual Sales Execution Rate “. it may be something investors want to chew on.
Supply restriction issues
AAPL did not provide a forecast for this quarter last time, but noted that supply restrictions on chips and other important components for the iPhone, Mac and iPad could consume up to $ 4 billion in revenue. However, the gross profit margin is still expected to be 41.5% to 42.5%. Last-quarter smartphone shipments tracked by technology market analytics firm
Canalys grew just 1%. To make matters worse, Chinese smartphone maker Xiaomi pushed AAPL out of its traditional second place in market share. According to Canalys’ calculations, Samsung (SSNLF) has a market share of 19%, Xiaomi has a share of 17%, and AAPL has a market share of 14%.
According to “Barron’s Weekly”, the consensus on Wall Street pointed out that iPhone sales in the third fiscal quarter declined from the previous quarter, with an average estimate of $33.9 billion. The total for the second quarter was approximately US$48 billion.
But as an analyst pointed out, it does not explain the entire situation of 5G upgrades. Remember the AAPL iPhone’s sales record of $65.6 billion in the first fiscal quarter? Although AAPL is late to the 5G party, there are reports that it could strengthen its iPhone lineup this fall. Talk about it later.
Wall Street has high hopes. For example,
UBS analyst David Vogt admitted that supply constraints may weaken revenue, but because he believes demand for iPhones and Macs is strong, his forecast is still high. It expects revenue of $ 74.7 billion, more than its previous forecast of $ 71.3 billion. By his calculations, this will work out to $ 1.01 per share, which is higher than his previous $ 0.95.
Morgan Stanley’s MS 1.1% Katy Huberty is in line with Vogt’s earnings forecast, but it is increasing its earnings to $1.02 per share. “We have seen the combination of mature replacement cycles increase

Leave a Reply

Your email address will not be published. Required fields are marked *