Apple (AAPL): 4 Key Findings From The 10Q - RBC

RBC Capital analyst, Amit Daryanani, reiterated his Outperform rating on shares of Apple (NASDAQ: AAPL) after reviewing the 10Q. Four items stood out:

1) FY16 Capex forecast was reduced by $2B to $13B (+15% y/y)

2) Total manufacturing and purchase commitments came in at $21.0B (-3% y/y or ~-20% ex-OLED capacity investment)

3) Warranty Accruals: We estimate lower levels of accruals $380M bolstered gross-margins by ~110bps q/q (AAPL reported 38.0% GM)

4) AAPL's share repurchase authorization was increased to $175B from $140B of which $127B has been utilized.

No change to the price target of $115 which is based on ~13x FTM earnings, slightly below AAPL's five year price/FTM earnings multiple of 15x, due to the expectation for EPS to decline -10% y/y in FY16.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $104.21 yesterday.

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