Apple Inc. Prepares to Release Positive Earnings for Q4 2024
Cupertino, California-based Apple Inc. (AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. With a remarkable market cap of $3.5 trillion, the company also provides services in payment, digital content, cloud, and advertising. Apple is set to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Thursday, October 31.
Anticipated Earnings Growth
Analysts are projecting a profit of $1.54 per share on a diluted basis, which marks a 5.5% increase from last year’s $1.46 per share. Notably, Apple has consistently exceeded Wall Street’s earnings per share (EPS) estimates during its last four quarterly reports. In the previous quarter, the company reported an EPS of $1.40, which exceeded the consensus estimate by 4.5%.
Yearly Performance Outlook
For the full fiscal year 2024, analysts predict AAPL will achieve an EPS of $6.65, reflecting an 8.5% increase from $6.13 in fiscal 2023.
Stock Market Performance
AAPL stock has appreciated by 19.9% year-to-date, lagging behind the S&P 500, which has gained 21.5% in 2024. In contrast, AAPL has outperformed the Technology Select Sector SPDR Fund (XLK), which recorded an 18.7% gain during the same period.
Challenges and Innovations
Recently, shares of Apple fell by 3.3% after analyst Ming-Chi Kuo from TF International Securities announced a cut of about 10 million units in iPhone 16 orders for late 2024 and early 2025, indicating weaker-than-expected demand. Conversely, on October 15, AAPL rose by more than 1%, reaching a record high following the launch of a new powerful iPad mini tailored for its Apple Intelligence AI features.
Analyst Sentiment
The consensus opinion among analysts remains cautiously optimistic for AAPL stock, carrying a “Moderate Buy” rating overall. Out of 32 analysts covering the stock, 18 recommend a “Strong Buy,” four suggest a “Moderate Buy,” nine give a “Hold,” and one advises a “Strong Sell.”
Future Price Projections
The average analyst price target for AAPL is currently set at $245.13, suggesting a potential upside of 6.2% from its existing price levels.
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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
