Apple’s Earnings Are Next Week. Analysts Are Expecting More.

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Apple shares are trading higher Tuesday arsenic the Street continues to ratchet up expectations for the company’s June 4th net report, present a week away.

The Wall Street statement presumption is that Apple (ticker: AAPL) volition station gross of $72.9 billion, up 22% from a twelvemonth earlier, with profits of $1 a share. When it reported its March 4th results, Apple didn’t contented circumstantial fiscal forecasts for the June quarter, but said it expects “strong treble digit” gross maturation connected a year-over-year basis. Management besides predicted a bigger quarter-over-quarter diminution than successful anterior years, owed to the aboriginal motorboat past twelvemonth of the iPhone 12 and continuing constituent shortages.

Apple has said gross borderline for the 4th volition beryllium betwixt 41.5% and 42.5%, and that proviso constraints affecting Macs and iPads volition trim top-line gross by arsenic overmuch arsenic $4 billion.

In a probe enactment Tuesday, UBS expert David Vogt lifted his outlook for the quarter, citing beardown request for some iPhones and Macs. His forecast for the 4th went to $74.7 cardinal successful gross and profits of $1.01 a share, from $71.3 cardinal and 95 cents a share. Vogt repeated his Buy rating, and raised his people for the banal terms to $160, from $155. He said gross would beryllium higher inactive were it not for proviso constraints.

Apple shares connected Tuesday were up 2.6%, to $146.15, portion the S&P 500 had gained 1.6%.

Vogt present sees iPhone portion shipments for the September 2021 fiscal twelvemonth of 227 million, up from 225 million. For fiscal 2022, helium present expects shipments of 225 cardinal phones, up from 220 million. He boosted his Mac forecast for the 4th to 6 cardinal units, from 5.5 million.

Monness Crespi Hardt expert Brian White repeated a Buy standing and $180 stock-price target, saying that the Street statement for the 4th is acold excessively conservative. He expects gross of $80.33 billion, which would beryllium up 35% twelvemonth implicit year, with profits of $1.16 a share. That would inactive beryllium a 10% sequential decline, and somewhat steeper than the mean 8% dip implicit the past 4 June quarters, helium noted.

White’s forecasts for June 4th gross are $39.1 cardinal for the iPhone (the Street statement is $33.9 billion); $9.6 cardinal for Macs (way supra the Street astatine $7.8 billion); $6.9 cardinal for iPads (the Street’s telephone is $7.2 billion); $7.5 cardinal for wearables, home, and accessories (consensus is $7.8 billion); and $17.2 cardinal for services (vs. the statement telephone of $16.2 billion).

Write to Eric J. Savitz astatine eric.savitz@barrons.com

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