Scalper1 News
With current iPhone sales looking soft, Apple ( AAPL ) is likely to face two rough quarterly financial reports before the launch of the iPhone 7 this fall, Pacific Crest Securities analyst Andy Hargreaves said Sunday. “We continue to view the medium-term risk/reward on AAPL positively,” Hargreaves said in a research report. “However, we believe soft near-term iPhone demand should drive fiscal Q2 results at the low end of guidance and prompt fiscal Q3 guidance below consensus estimates, which is likely to prevent further near-term stock appreciation.” Hargreaves reiterated his overweight rating on Apple stock, with a price target of 127. Apple stock was up 1%, near 110, in midday trading on the stock market today . Hargreaves forecasts Apple sold 47.5 million iPhones in the March quarter, which is below the consensus estimate on Wall Street of 50 million units. “Supply and demand checks continue to suggest mediocre iPhone unit volume,” he said. Because of the lower fiscal Q2 iPhone sales volume, Hargreaves expects Apple will report earnings per share of $1.88 on sales of $50 billion, which is below Wall Street’s consensus estimates of $2 in EPS and $52.2 billion in sales. Also, Wall Street’s June-quarter estimates “appear slightly high,” he said. For the company’s fiscal Q3, Hargreaves expects Apple to sell 41.8 million iPhones, below the consensus estimate of 44 million. Sales of the current iPhone 6S series handsets have disappointed, but potential consumer upgrades with the iPhone 7 should keep Apple shares from falling too much, he said. Scalper1 News
Scalper1 News