- Apple is ready to report fiscal fourth-quarter earnings outcomes after the market shut on Thursday.
- Wall Street anticipates $94.36 billion in income and adjusted earnings per share of $1.60.
All eyes are on Apple, the world’s largest firm by market worth, because it prepares to report its fiscal fourth-quarter outcomes after the market closes on Thursday.
The quarter, which ended September 30, will encapsulate two weeks of Apple’s iPhone 16 gross sales.
The inventory was buying and selling at $230.40 at 1:50 p.m. ET, down by about 1.4%.
Here’s what Wall Street expects Apple to report for its fiscal fourth-quarter, in keeping with Bloomberg knowledge:
- Revenue: $94.36 billion
- Adjusted earnings per share: $1.60
Wall Street will largely be trying to the corporate’s steerage for the upcoming vacation months, which has traditionally represented Apple’s strongest quarter.
Top of thoughts for analysts who cowl the inventory is whether or not Apple’s AI efforts will repay and gasoline demand for the iPhone 16, or if shoppers are taking a wait-and-see method.
The firm launched its first spherical of “Apple Intelligence” options this week, about six weeks after the discharge of the iPhone 16. Meanwhile, Apple’s core AI options aren’t anticipated to be launched for the iPhone till early subsequent yr.
Here’s what Wall Street is in search of in Apple’s upcoming earnings report.
Bank of America: ‘Look previous the iPhone 16 noise’
With some conflicting views on Wall Street about iPhone 16 demand in current weeks, Bank of America mentioned buyers ought to “look previous the iPhone 16 noise to impression of Apple Intelligence.”
“Contrary to each cycle the place all of the {hardware}/software program performance is kind of static by way of the course of the cycle, we view the cycle as extra dynamic with extra materials software program updates that will increase the worth to the person,” Bank of America analyst Wasmi Mohan mentioned in a be aware final week.
Mohan mentioned iPhone demand to choose up over the subsequent few months as Apple’s AI options grow to be extra strong and expects the corporate to promote 80 million iPhone models through the vacation season.
Mohan is inspired by a barely larger common promoting value for iPhones as shoppers overwhelmingly proceed to gravitate in the direction of the dearer Pro fashions.
Bank of America charges Apple at “Buy” with a $256 value goal.
JPMorgan: Expect a beat on outcomes however a miss on steerage
JPMorgan expects Apple to report a powerful fourth-quarter earnings report that may seemingly beat income and revenue estimates however that it’ll additionally disappoint with weaker-than-expected steerage for the vacation quarter.
“Sell-through for iPhone 16 sequence began off slower than iPhone 15, and whereas momentum has improved in current weeks, the magnitude of the advance remains to be placing volumes modestly under final yr,” JPMorgan analyst Samik Chatterjee mentioned in a Monday be aware.
Like many analysts on Wall Street, Chatterjee is in search of proof that AI options will drive a bump in iPhone gross sales.
JPMorgan charges Apple at “Overweight” with a $265 value goal.
Wedbush: Apple will probably be a $4 trillion firm subsequent yr
Wedbush analyst Dan Ives is not budging from him bullish view on Apple heading into the corporate’s monetary outcomes. He argues that the iPhone is on the verge of a supercycle as shoppers improve their telephones to get entry to Apple Intelligence options.
“We anticipate a powerful iPhone efficiency for the September quarter and anticipate a comparatively bullish December iPhone demand commentary from Cook & Co. regardless of most of the bears just lately yelling hearth in a crowded theater on the power of iPhone 16 gross sales,” Ives mentioned in a be aware on Sunday.
Ives says that bearish views on Apple fail to understand its put in base of 1.5 billion iPhones that may finally must be changed, in addition to the rising Services enterprise that helps monetize the large person base, and the potential for Apple to be the gatekeeper of AI applied sciences to a big group of individuals.
Wedbush charges Apple at “Outperform” with a $300 value goal.
Goldman Sachs: ‘We see upside to consensus’
Goldman Sachs mentioned it sees “upside to consensus income and EPS pushed by outperformance in iPhone and Services” in a be aware final week.
Goldman analyst Michael Ng expects the corporate to report $1.61 in earnings per share and $94.5 billion in income, which might characterize year-over-year development of 6%.
Like different analysts, Ng is targeted on the impression of AI and all the software program options Apple is ready to launch within the subsequent few months.
“Although Apple Intelligence has but to be a requirement driver, we’re inspired by the rollout of Apple Intelligence options with iOS 18.1 (Week of October 28, contains Writing Tools, notification summaries, Clean Up in Photos), iOS 18.2 (at present in beta for est. December launch, contains Genmoji, Image Playground, ChatGPT), and iOS 18.4 (est. March 2025 launch, extra superior Siri, personalization, on-screen consciousness),” Ng mentioned.
Goldman Sachs charges Apple at “Buy” with a $275 value goal.
