Apple’s latest earnings report beat analysts’ expectations and allayed concerns about slowing iPhone sales.
The company launched a $90 billion stock buyback program and increased its quarterly dividend by 4%.
“Apple remains our top pick, and here’s another Cupertino masterpiece performance,” Wedbush said.
While revenue fell for the second straight quarter, down about 3% year-over-year, the company’s quarterly iPhone sales exceeded $51 billion, beating analysts’ estimates of 2 percent. , 5 billion USD. Strong iPhone sales helped offset weakness in Apple’s Mac and iPad divisions.
For future growth, investors are looking forward to Apple’s expected September iPhone 15 launch, as well as expanding into India, which the company mentioned nearly 20 times in its earnings call.
Also giving Apple investors confidence was the company’s announcement of a new $90 billion share buyback program and a 4% increase in the company’s quarterly dividend to $0.24 per share. .
Shares of Apple rose more than 5% on Friday, adding $135 billion to the company’s market value, which stands at about $2.77 trillion.
Here’s how three Wall Street analysts reacted to Apple’s solid earnings results.
Wedbush: “The same result as Lebron from Cupertino.”
Rating: Good, price target $205
“Cook & Co. has beaten the iPhone impressively and offers a relatively optimistic outlook for the future, which should give Street more confidence that Cupertino is weathering this macro storm in the same style as it does.” Rock of Gibraltar The surge in demand in China speaks to more sharing of the benefits Apple is seeing with the iPhone 14 Pro along with higher ASPs globally which we believe are currently at $900 or more up gives Apple favorable headwinds in this market… Overall, Cook spoke of a stable consumer demand environment with particular strength in emerging markets as Apple continues to bet strong into a number of key markets with India centered,” Wedbush said.
JPMorgan: “Destroy Macro Headwinds with Execution.”
Review: Overweight, $190 price target
“Exact results and guidance are what investors are looking for from the company to feel reassured about its defensive position, while also being Big Tech’s better resilience in general to conditions.” The current macro as well as the possibility of further macro recession, makes it clear that continuing to pay 26x NTM earnings for AAPL stock would justify sufficient reasons to pay the premium.” JP Morgan speak.
Goldman Sachs: “iPhone continues to gain market share”
Rating: Buy, price target $209
“We have confidence in our Buy rating and believe AAPL stock continues to be attractive. First, the iPhone beat was boosted by recapturing sales lost due to previous supply issues as well as sales. as better-than-expected performance in developing markets… Second, Services Revenue grew +5% YoY with all-time record revenue in the App Store, Music, iCloud, and bar accounting, continues to demonstrate Services is a reliable source of long-term growth… Third, AAPL’s generous shareholder return program continues to support the stock,” Goldman book speak.
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