Optimism Rising On Wall Street Ahead Of Apple Earnings Report

Wall Street analysts are raising their estimates ahead of Apple‘s (AAPL) fiscal third-quarter earnings report next week. Apple stock rose on Tuesday.


Three months ago, Apple executives dampened expectations for the June quarter, citing the possibility of a more pronounced seasonal slowdown in iPhone sales.

But some analysts believe the company might have been too cautious with its guidance.

UBS analyst David Vogt on Tuesday reiterated his buy rating on Apple stock and raised his 12-month price target to 166 from 155.

Apple Stock Rises On Bullish Reports

On the stock market today, Apple stock rose 2.6% to 146.15.

“Based on strength in iPhones in what is typically a seasonally slower quarter and better Mac sales despite supply chain headwinds, we are raising our fiscal Q3 revenue and EPS estimates,” Vogt said in a note to clients.

He now expects Apple to earn $1.01 a share on sales of $74.7 billion. Wall Street’s consensus estimates are targeting Apple earnings of $1.01 a share on sales of $73.1 billion, FactSet says. In the year-earlier period, Apple earned 65 cents a share on sales of $59.7 billion.

Upside to Apple’s June-quarter numbers will be limited by product supply not demand, Vogt said.

Apple plans to report its June-quarter results on July 27.

Wall Street Estimates ‘Overly Conservative’

Elsewhere on Wall Street, Loop Capital Markets analyst Ananda Baruah said Apple appears poised to beat consensus sales numbers on iPhones, Macs and iPads in the quarter. He maintained his buy rating on Apple stock.

Monness Crespi Hardt analyst Brian White kept his buy rating on Apple stock with a price target of 180.

In a note to clients Tuesday, White called Wall Street’s estimates for Apple’s fiscal third-quarter “overly conservative.” But he noted lingering concerns about regulatory and legal actions against the company that weigh on Apple stock.

“A changing political landscape and growing suspicion of Big Tech places Apple in a more vulnerable position than in past years,” White said.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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