Market Overview

Why Apple Shareholders Should 'Expect A Beat' In Q2

Why Apple Shareholders Should 'Expect A Beat' In Q2
Related AAPL
Wedbush Adds Apple To Best Ideas List, Sees Opportunity In iPhone Upgrades Next Year
Benzinga's Top Upgrades, Downgrades For October 19, 2018
Apple Stock Called 'Best Idea,' Gets Sky-High Price Target (Investor's Business Daily)

In a new report, Citi Research analyst Jim Suva discusses Citi’s latest Apple Inc. (NASDAQ: AAPL) supply chain checks and explains why Citi remains bullish on the world’s largest company. Suva believes that Apple shareholders should “expect a beat” this earnings season.

The Numbers

After Citi’s most recent round of global supply checks, the feedback obtained indicates that demand for the iPhone remains robust. In fact, Citi is confident enough in the strength of the latest numbers to boost its iPhone unit estimates from 46 million to 49 million, more than 6.0 percent higher than consensus estimates of 46 million.

Share Price Driver

Citi is calling for a slight beat by Apple in the June quarter, forecasting $1.79 per share in earnings versus consensus estimates of $1.76. However, Suva believes that the success of new products and services will drive share prices more than the bottom line.

“Investor focus will be on commentary around new product (6S launch, enterprise grade 12” iPad) and services (Apple Pay in the UK, Apple Music, Apple TV?) launch and traction within their installed base will likely be a key driver of the stock in the interim,” he explains.

Related Link: Apple And Tesla: Creating Industries Vs. Products

What To Watch For

According to Suva, Apple shareholders have several key issues to watch in coming months. Those issues include continuing iPhone sales growth, global roll-out and performance of Apple Pay, slowing smartphone sales in China, the launch of enterprise grade iPads and the performance of Apple Music.


Overall, Citi remains bullish on Apple. The firm has a Buy rating and a $145 target for the stock.

Latest Ratings for AAPL

Oct 2018WedbushInitiates Coverage OnOutperform
Sep 2018NomuraMaintainsNeutralNeutral
Sep 2018JP MorganInitiates Coverage OnOverweight

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Apple Pay Citi iPhoneAnalyst Color Price Target Reiteration Analyst Ratings Tech Best of Benzinga


Related Articles (AAPL)

View Comments and Join the Discussion!

Latest Ratings

AAPLWedbushInitiates Coverage On310.0
DHTJP MorganUpgrades0.0
DXCMGoldman SachsUpgrades125.0
ORLYJP MorganUpgrades398.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Morning Market Losers

GBP/USD Little Higher