Apple Q3 Preview: Analyst Expects Modest Beat, Downward Guide But Sees Improving Q4 App Store Trends
Portfolio Pulse from Anusuya Lahiri
Ahead of Apple Inc's Q3 earnings, BofA Securities analyst Oleg Melentyev maintains a neutral rating with a price target of $210. App Store revenues and downloads have seen a Y/Y increase, with the gaming segment accounting for 55% of total App Store revenue. However, the analyst expects a modest beat in the quarter and a slightly weaker guide for total revenue in the September quarter. Apple shares traded lower by 0.32% at $191.97 on the last check Thursday.
August 04, 2023 | 1:47 pm
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Apple's Q3 earnings are expected to modestly beat expectations, but the guidance for total revenue in the September quarter is expected to be slightly weaker. App Store revenues and downloads have increased Y/Y, with the gaming segment being the largest contributor.
The analyst's neutral rating and the expected modest beat in Q3 earnings suggest a stable short-term outlook for Apple. However, the slightly weaker guidance for the September quarter could potentially impact the stock negatively. The increase in App Store revenues and downloads, particularly in the gaming segment, is a positive sign, but the overall impact is neutral due to the mixed signals.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100