A customer service representative is working with customers at the Apple Store as shoppers return to indoor shopping after Los Angeles County eased restrictions on places like the Beverly Center in Beverly Hills on Oct. 8 of 2020.
Genaro Molina | Los Angeles Times | Getty Images
Apple will have to report its first-quarter 2021 tax benefits on Wednesday and analysts ’expectations are bullish.
The company did not excite investors in its fourth quarter, which ended Sept. 26, 2020, due to weak iPhone sales. But the weakness is probably due to people waiting for the new iPhone 12, which didn’t go on sale until October.
Wednesday’s earnings report will mark the first full season since Apple launched its new range of iPhones and subscription service packages.
The company’s shares rose about 1% in the pre-market, amid broader market gains.
This is what analysts say about stocks:
Morgan Stanley Research
Morgan Stanley analysts said in a note Thursday that they expected a record in the December quarter.
“Our recent conversations suggest that investors expect Apple to post solid, but not fantastic, results for the December quarter. We disagree and believe Apple is likely to report record quarterly revenue and earnings of all time,” they said. write analysts, who raised their target price to $ 152 from $ 144. “In our opinion, the iPhone 12 has been the launch of Apple’s most successful product in the last 5 years.”
The firm noted the strength of Apple’s product and service portfolio, driven by 5G adoption, continued remote work and learning, and sustained commitment to the App Store. Analysts added that they expect double-digit year-on-year growth for Apple’s five revenue segments in the December quarter.
“Overall, our December quarter revenue of $ 108.2 million is 5% above consensus (we are ahead of consensus in all segments except services), while our EPS of $ 1.50 is 7% above consensus, ”they said. “We expect continued strength in demand and our revenue and EPS estimates for fiscal 21 are 5% above consensus.”
DA Davidson
The firm said in a note Thursday to customers that it considers the stock “looks delicious” and that it revised its $ 133 target price.
“As stated above, we believe that Apple’s first line of smartphones in 5G networks is better positioned than investors who fully appreciate them for the following reasons: 1) operator support, 2) favorable discretionary revenue and 3) 1B working remotely and 1B learning remotely In addition, we attribute the recent strength of stocks to investors warming this idea, ”wrote DA Davidson analyst Tom Forte.
The firm said it will pay attention to iPhone sales trends, comments on privacy and advertising and the possible implications of the new Biden administration.
“We expect sales to increase 15.7% to $ 106,236 million, which exceeds the consensus forecast of $ 102,563 million,” the firm said. “Please note that Apple did not give formal guidance, but it did expect double-digit growth for all product categories expected from the iPhone, which expects single-digit growth. In terms of profitability, we estimate $ 33,525 million in EBITDA (up 31.6%), which is above the consensus figure of $ 31,763 million. consensus estimate of $ 1.40 “.
AB amber
The firm expects Apple to release strong iPhone sales, but said there is little surprise due to a highly likely iPhone 12 cycle. Analysts, including Toni Sacconaghi, raised their first-quarter EPS estimates to $ 1.53 and the FY21 EPS to $ 4.26 due to higher iPhone ASP, a weaker U.S. dollar and strong Mac / iPad sales.
“While our estimates are above consensus, we believe our figures are relatively in line with the country’s expectations,” analysts wrote Thursday. “We expect Apple to provide ‘guidelines’ instead of ‘guidelines’ for Q2, but we’re above consensus, probably because of the currency, and our expectation of a modestly stronger seasonality than normal because of the moment of launch of the iPhone 12 “.
The firm said it would pay attention to Apple’s comments about potential earnings from smartphone holdings, ongoing regulatory concerns and Apple’s new advertising and service adoption, but said Apple needs something more. great for exceeding expectations.
“AAPL has had a long history and operates in line with large technology companies with higher growth rates. At a consensus of 33x 21 EPS and with higher expectations than the street, we strive to achieve a higher performance than AAPL, if not has an amazing product announcement or migration to an included hardware subscription model, ”he wrote.
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