Apple ‘s upcoming earnings report might show a rough result for iPhone sales, but investors shouldn’t panic, according to JPMorgan. Analyst Samik Chatterjee, who has an overweight rating on Apple, said in a note to clients on Sunday that sales of the flagship iPhone may disappoint investors during this week’s earnings report. “The latest reduction in our forecast brings us from in line to slightly below consensus for both total and iPhone revenue in FY22 (Sep-end). Additionally, in relation to guidance, we expect moderating consumer spending trends and tough compares to lead the company to guide to moderating revenue growth in F3Q22 (Jun-end) beyond the mid-single digit growth y/y in F2Q22,” Chatterjee wrote. For the quarter that finished at the end of March, JPMorgan now projects 55 million units of iPhone sales, which is down from 60 million previously. For the entire calendar year of 2022, JPMorgan sees 235 million unit sales, as compared with 245 million previously. Apple no longer explicitly reports iPhone unit sales, instead simply disclosing the iPhone revenue. That can be changed by both the number of phones sold and the average selling price. JPMorgan projects Apple to report just under $45 billion in iPhone revenue from its latest quarter, which is down from nearly $48 billion in the same period last year. As part of the updated estimates, JPMorgan trimmed its price target on Apple to $205 per share from $210. The new target is still more than 26% above where the stock closed Friday. “We remain above consensus in our out-year revenue and earnings forecast, led by our continued expectation for better than anticipated growth in Products as well as margin and earnings trajectory on the back of robust growth in Services. Our positive view on the shares longer-term leads us to maintain our Overweight rating,” Chatterjee wrote. Apple will report its latest quarterly earnings after the bell on Thursday. — CNBC’s Michael Bloom contributed to this report.
An employee arranges Apple iPhones as customer shop at the Apple Store on 5th Avenue shortly after new products went on sale in Manhattan, in New York City, March 18, 2022.
Mike Segar | Reuters
Apple’s upcoming earnings report might show a rough result for iPhone sales, but investors shouldn’t panic, according to JPMorgan.
Source: https://www.cnbc.com/2022/04/25/jpmorgan-predicts-iphone-revenue-to-fall-short-when-apple-reports-later-this-week.html
