Are Apple Shares Going To Move Higher On Quarterly Earnings? This Analyst Thinks So

Baird Senior Research Analyst Will Power was on CNBC to discuss the expectations from quarterly results of Apple Inc. AAPL and if the company will continue to make gains in China.

"Our expectation is not only are they going to have a strong quarter, but we think the guidance will prove encouraging, too," Power said, "and obviously the focus will be on iPhones, but we think there’s nice upside potential to ASPs and gross margins and we think that can still drive shares higher from here."

Is A Big Share Buyback On The Cards?

"Look, this is a company that generates $50 billion a year in free cash flows," Power replied. "So at a minimum they got to find a way to spend that and of course on top of that they have got another $150 billion plus sitting on the balance sheet. So, there's no question there's lot of capacity there.

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He continued, "Our expectation is that it will get addressed in the April time frame which has been there recent history and little question that we’ll see a update in higher numbers there going forward."

Is There Still Room For Apple To Grow In China?

"Well, I think there's a big opportunity," Power said. "Their share is still probably single digits, that's a market that has been dominated by Android and lower-end phones, but there's a big middle class needless to say in China that continues to be enormous opportunities.

"I think one of things that's been encouraging for us is been the signs from various studies that suggests they have regained a fair amount of share not only in Asia, but also throughout Europe and even in Samsung's home market, gaining some share in South Korea," Power said.

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