Apple Q2 Earnings Preview: Analyst Sees 'Turning Point In Sentiment,' Catalysts Ahead In Second Half Of 2024 For Tech Giant
Portfolio Pulse from Chris Katje
Apple Inc (AAPL) is anticipated to report its Q2 financial results on May 2, 2024. Analysts predict a strong second half of fiscal 2024, despite an expected 11% year-over-year decline in iPhone revenue to $45.9 billion. Goldman Sachs analyst Michael Ng maintains a Buy rating on Apple but lowers the price target from $232 to $226. The report highlights potential catalysts including the WWDC event, AI product reveals, new product launches, and the iPhone 16 cycle. Services revenue is expected to grow by 14% to $23.9 billion, with AppleTV+ also showing strength. Apple is expected to raise its quarterly dividend and announce a new share buyback program.
April 12, 2024 | 4:51 pm
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Apple Inc's Q2 earnings are closely watched, with expectations of a strong H2 2024 despite a decline in iPhone sales. Services segment and AppleTV+ are strong, with potential catalysts including new product launches and the iPhone 16 cycle. Goldman Sachs maintains a Buy rating but lowers the price target.
The anticipation of a strong second half of 2024, driven by various catalysts such as new product launches and the iPhone 16 cycle, alongside a positive outlook on the Services segment and AppleTV+, suggests a potential positive impact on AAPL's stock price. The analyst's maintained Buy rating despite a lowered price target reflects confidence in Apple's long-term growth, which could influence investor sentiment positively. The expected dividend increase and new share buyback program further support a bullish outlook for AAPL in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100