Apple Analyst Cheat Sheet: How Wall Street Foresees Earnings
Apple (NASDAQ:AAPL), Apple, everywhere. And nowhere more than on Wall Street this week as research analysts share what they see in their crystal balls. Apple earnings are scheduled for Tuesday after the closing bell, but here’s what some of “the pros” are expecting (hat tip Business Insider):
Deutsche Bank: Analyst Chris Whitmore expects Apple to beat Street consensus driven by robust iPhone demand outstripping supply in many geographies. His 28 million unit estimate will likely prove conservative. iPad and Mac strength continues and should more than offset a negative foreign exchange (FX) swing. He expects gross margins to beat (40%) due to weak commodities and a mix shift towards the higher-margin iPhone. He reiterates his Buy rating.
Jefferies & Co.: Peter Misek believes that iPhone shipments of 35 million are possible during the quarter. He sees a strong product cycle (iPhone 5, iPad 3, iTV) going into the calendar year and is raising estimates and increasing his price-target to $550. He reiterates his Buy rating.
Bernstein Research: Toni Sacconaghi is looking for $39.4 billion in revenue and EPS of $10.57 driven by sales of 31.9 million iPhones (up 97% year-over-year), 13.6 million iPads (up 85%), 5 million Macs (up 22%), and 13 million iPods (down 33%). The biggest upside swing factors are likely to be iPhone device inventory and gross margins. He advocates investors maintain long positions. Apple remains his top stock pick with an Overweight rating and $550 price-target.
UBS: Maynard Um expects Apple to print its best holiday quarter in history beating Street estimates due to the launch of the iPhone 4S, accelerated international launches (carrier and country), lower price points for iPhone 4/3GS and healthy demand for the iPad. He believes the HDD shortage in Thailand likely had a minimal impact on Apple’s Mac supply. He maintains his Buy rating and $510 price-target.
Pacific Crest: Andy Hargreaves agrees that results should exceed Street estimates. Sustained iPhone demand and channel inventory fill will likely drive estimates higher. That said, timing of new iPad launch will be critical to next quarter guidance and estimates. He continues to recommend owning the stock and believes the company’s differentiated software and services stack can protect margins. He maintains his Outperform rating and $470 price-target.
Investing Insights: Apple Inc. First Quarter Earnings Sneak Peek.