Is Apple About To Disappoint Investors With Q2 Print? Analyst Flags 2 Factors Weakening iPhone Maker
Portfolio Pulse from Shanthi Rexaline
Apple, Inc. (AAPL) may disappoint investors in its Q2 earnings due to lower iPhone sales and weakness in China, despite slight increases in iPad and Mac revenue, according to Needham analyst Laura Martin. Martin maintains a Buy rating with a $220 price target but has reduced fiscal year 2024 Q2 estimates, expecting a 4% year-over-year drop in sales to $90.8 billion and a 7% reduction in EPS to $1.51. The reduction reflects a 9% year-over-year drop in iPhone revenue, with iPad and Mac revenues slightly above previous estimates.
April 16, 2024 | 12:14 pm
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NEGATIVE IMPACT
Apple's Q2 earnings may disappoint due to lower iPhone sales and weakness in China, offset slightly by better iPad and Mac revenues. Analyst Laura Martin maintains a Buy rating with a $220 price target.
The reduction in Apple's Q2 earnings estimates by Needham, due to lower iPhone sales and weakness in China, could lead to negative investor sentiment in the short term. However, the maintained Buy rating and $220 price target by the analyst suggests a belief in the company's long-term value, potentially mitigating some immediate negative impact.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100