Apple Prepares to Unveil First-Quarter Earnings Amid Positive Projections

Cupertino, California-based Apple Inc. (AAPL) is a leader in designing, manufacturing, and selling smartphones, personal computers, tablets, wearables, and accessories, alongside various services. Its impressive market cap of $3.5 trillion underscores its global presence across the Americas, Indo-Pacific, and EMEA.

Upcoming Earnings Report and Analyst Expectations

The tech giant is set to reveal its first-quarter results after the market closes on Thursday, January 30. Analysts anticipate that Apple will announce a non-GAAP profit of $2.36 per share, reflecting an 8.3% increase from $2.18 per share reported during the same quarter last year. Notably, Apple has consistently outperformed Wall Street’s profit expectations for the past four quarters. In the latest quarter, its adjusted EPS rose by 12.3% year-over-year to $1.64, surpassing estimates by 10.1%.

Future Earnings Projections

For fiscal 2025, Apple’s adjusted EPS is expected to reach $7.43, a 10.1% increase from $6.75 in fiscal 2024. Looking ahead to fiscal 2026, projections indicate a 12.8% year-over-year earnings growth to $8.38 per share.

Stock Performance Compared to Industry Trends

AAPL stock has increased by 25.5% in the past year, outperforming the S&P 500 Index’s gains of 22.1% and the Technology Select Sector SPDR Fund’s (XLK) increase of 18.5% within the same period.

No Shortage of Good News, But Challenges Remain

Following the release of its mixed Q4 results on October 31, Apple’s stock price fell by 1.3%. While the company reported net sales of $94.9 billion—a 6.1% increase year-over-year and above analysts’ expectations—its service revenue of $24.9 billion missed the mark. iPhone sales exceeded forecasts; however, sales of Mac, iPad, and other products did not meet analyst expectations.

On a positive note, Apple achieved an operating margin of 46.2%, growing by 105 basis points from the previous year. This led to a gross profit growth of 6.8% to $180.7 billion. Additionally, operating cash flows for fiscal 2024 rose nearly 7% year-over-year to $118.3 billion, enabling Apple to return over $94.9 billion to shareholders through buybacks during the year.

Analyst Sentiment and Stock Ratings

The consensus on AAPL stock leans towards a moderately bullish outlook, earning an overall “Moderate Buy” rating. Of the 35 analysts covering the stock, 18 recommend a “Strong Buy,” four suggest “Moderate Buy,” 10 recommend a “Hold,” and three advise a “Strong Sell.” The average price target of $243.22 suggests a modest potential upside of 4.3% from current trading levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart

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