Apple (AAPL) 'Beat and Raise' Earnings Has Give Way to 'Holding Pattern', Cowen Comments
Cowen analyst Timothy Arcuri reiterated an Market Perform rating and $135 price target on Apple (NASDAQ: AAPL) following results. The analyst notes the company's 'beat and raise' earnings pattern has given way to a holding pattern.
Arcuri commented, "While headline guidance was down the middle of the fairway, CQ4 iPhone units still look to be a little better (78-79MM) when adjusting for AAPL's recent history of beats on both revs/EPS. More importantly, we feel good about our downgrade off last Q's earnings as "beat/raise" has broadly given way to more of a "holding pattern" while new products/services gestate. Target and rating remain unch'd."
The firm is adjusting F2016 revs/EPS slightly from $259B/$10.01 to $257B/$10.35 (Street $9.77 precall), but C2016 rev remains largely unch'd at $262B and EPS adjusted from $10.10 to $10.46 (Street $10.03 pre-call). F2017 and C2017 EPS increased a bit of $11.05 and $10.92 respectively (Street $10.67 and $11.28 respectively).
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Shares of Apple closed at $114.55 yesterday.