The Axe on Apple (AAPL) Expects Earnings To Be A Non-Event
Get Alerts AAPL Hot Sheet
Rating Summary:
40 Buy, 24 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 20 | Down: 14 | New: 22
Join SI Premium – FREE
Piper Jaffray analyst, Gene Munster, maintained his Overweight rating on shares of Apple (NASDAQ: AAPL). The analyst expects Apple's Jun-16 quarter/Sep-16 guide on Tuesday 7/26 to be a largely neutral event for the stock because buy-side expectations are low for iPhone and the overall business. If Apple reports an in-line quarter and guides down slightly (~5%), which seems to be buy-side thinking, the stock would likely drift higher, although not move significantly. Bigger picture, the expectations for the iPhone 7 remain extremely low, thus any potential "wild card" improvements would be a meaningful positive for shares in September. Even an in-line iPhone 7 still leaves the stock facing easy comps in Mar-17 and Jun-17 with growing expectations for the 10th anniversary iPhone, either 7S or 8, in 2017.
The most likely scenario is that Apple guides Sept-16 to $43-45 billion in revenue, which would imply around 41-42 million iPhones, and gross margins to 37-38%. We note the iPhone 7 launch could impact the September quarter guide given Apple's demand expectation and channel fill plan.
The analyst surveyed 20 buy-side investors to generate a consensus for expectations. He believes the buyside is expecting Sept revenue guidance of $44.5 million and 41 million unit shipments. Both of these figures are below consensus and imply low expectations.
No change to the price target of $153.
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 $98.66 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Apple in talks with Google to use generative AI in iPhones- Bloomberg
- Newtek Business Services (NEWT) PT Lowered to $11 at Piper Sandler
- KeyBanc's latest data suggests Apple will see below-average growth
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, RumorsRelated Entities
Piper Jaffray, Gene Munster, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!