The financial world is looking closely at Apple as it prepares to share its third-quarter earnings on July 30. This upcoming report is especially notable because it will be the final earnings call for Tim Cook as chief executive officer before John Ternus takes over. Analysts are sharing their final predictions about how much money the tech giant made over the past few months.
Analysts expect revenue to reach nearly one hundred nine billion
Financial experts expect the brand to post very strong numbers for the quarter. Data from Yahoo Finance shows an average revenue estimate of 108.9 billion dollars across 27 different analysts. The earnings per share estimate sits at 1.89 dollars. TipRanks shows a very similar outlook, with a consensus revenue of 108.85 billion dollars. The company previously guided for a revenue growth of 14 to 17 percent compared to the same time last year. It also expects its gross margin to land between 47.5 and 48.5 percent.
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Hardware sales benefit from new releases and stable market share
This quarter represents the first full period to benefit from devices launched earlier in the spring. Aside from the new AirPods Max 2, there were no major hardware launches during these specific months. UBS noted that the market share for the iPhone actually increased during the quarter.
Mac computer revenue also went up thanks to the arrival of new models, even though the average selling price dropped slightly. The services division should see 13 percent growth, despite some struggles with App Store revenue.
Major banks share mixed price targets ahead of the call
Different financial firms have slightly different views on the stock right now. Bank of America keeps a buy rating with a target price of 380 dollars. It thinks investors will focus heavily on rising component costs and the upcoming leadership change. Morgan Stanley raised its price target to 364 dollars while pointing out potential changes to phone shipment volumes and general inflation. UBS is playing it safe with a neutral rating and a target of 296 dollars.
The upcoming conference call will give the market a clear picture of how well the hardware maker handled a quiet summer. Investors will listen closely for any hints about future pricing strategies and how the company plans to handle rising production costs under its new leadership team.
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