shares are trading higher Tuesday as the street continues to raise expectations for the company’s June quarterly report, now a week away.
The Wall Street consensus is that Apple (ticker: AAPL) will post revenue of $72.9 billion, up 22% from a year earlier, with earnings of $1 a share. When Apple reported its March quarterly results, Apple did not provide specific financial forecasts for the June quarter, but said it expects “strong double-digit” revenue growth year on year. Management also predicted a larger quarter-on-quarter decline than in previous years, due to the late launch last year of the iPhone 12 and ongoing parts shortages.
Apple has said gross margin for the quarter will be between 41.5% and 42.5%, and supply constraints affecting Macs and iPads will reduce revenue by as much as $4 billion.
In a research note Tuesday, UBS analyst David Vogt raised its outlook for the quarter, citing strong demand for both iPhones and Macs. His forecast for the quarter went to $74.7 billion in revenue and earnings of $1.01 per share, from $71.3 billion and 95 cents per share. Vogt reiterated his buy recommendation and raised his share price target from $155 to $160. He said revenues would be even higher if supply was not limited.
Apple shares rose 2.6% to $146.15 on Tuesday, as the
1.6% had won.
Vogt now sees shipments of iPhone units for the September 2021 fiscal year of 227 million, up from 225 million. For fiscal 2022, he now expects 225 million phones, an increase of 220 million. He raised his Mac forecast for the quarter from 5.5 million to 6 million units.
Monness Crespi Hardt analyst Brian White reiterated a buy recommendation and a price target of $180, saying the Street consensus for the quarter is far too conservative. He expects revenue of $80.33 billion, up 35% year-over-year, with earnings of $1.16 per share. That would still be a sequential 10% decline, and slightly steeper than the 8% average decline over the past four quarters in June, he noted.
White’s June revenue forecasts are $39.1 billion for the iPhone (the Street consensus is $33.9 billion); $9.6 billion for Macs (way above the street at $7.8 billion); $6.9 billion for iPads (the call from the street is $7.2 billion); $7.5 billion for wearables, home and accessories (consensus is $7.8 billion); and $17.2 billion for services (versus the $16.2 billion consensus call).
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