Morgan Stanley Expects Apple Q2 Earnings to Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy AAPL?
Morgan Stanley notes memory inflation will pressure Apple margins, but call this "well-known" and expects gross margin downside to be more than offset by revenue upside in the June quarter guidance. All of this is seen making "for a better than feared earnings and a clearing event into WWDC this June and the iPhone launch in September," the analyst tells investors in a preview of the company's fiscal Q2 report. For the June quarter, the firm is 5% above Street revenue estimates, but 170 basis points below Street gross margin forecasts, leading to largely in-line EPS estimate of $1.74, adds the analyst, who has an Overweight rating and $315 price target on Apple shares.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 273.170
Low
239.00
Averages
306.89
High
350.00
Current: 273.170
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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