Apple (NASDAQ: AAPL) is scheduled to report its first quarter results next week. And while all expectations are for a somewhat disappointing report, comments on the next few quarters may come later than expected. Bank of America analyst Wamsi Mohan.
Mohan, who has a neutral rating and a price target of $153 per share at Apple (AAPL), said the company’s earnings decline in the March quarter could be as much as 20% higher than expected. pointed out.
“The tone of the call is very important for understanding the underlying demand trajectory. [December quarter] The supply of high-end Pro model iPhones has been severely constrained,” Mohan wrote in a note to clients. added. [the first-half of 2023].”
Analyst consensus expects Apple (AAPL) to report quarterly earnings of $1.96 per share and revenue of $122.05 billion on February 2nd.
Mohan has slightly lowered his earnings per share estimate for Apple’s (AAPL) fiscal year 2023. Mohan now expects Apple (AAPL) to make him $5.73 from his previous forecast of $5.82 per share. However, Mohan has upped his earnings forecast slightly, with Apple (AAPL) annual revenue he believes to be $389 billion.
Mohan also said the first half of the year is likely to be tough for Apple (AAPL), in part due to the weak iPhone cycle, both from a supply and demand perspective. And given the sluggish economy and the upcoming iPhone launch, as well as the company’s upcoming mixed reality headset, which is set to debut later this year, questions remain about the second half of the year.
In November, Apple (AAPL) warned that disruptions from China related to China’s COVID-19 issue would affect iPhone 14 Pro shipments. China has since lifted her COVID-19 restrictions and reopened its economy.
On the bright side, if Apple (AAPL) sees a reacceleration of its services due to an improved video game environment and more stable advertising, it will be a “net plus,” Mohan added.
Other positives include a reduction in the impact of foreign exchange, the continued reopening of China, and increased vertical integration with Apple (AAPL) bringing more components in-house.
Earlier this week, Deutsche Bank cut Apple’s (AAPL) 2023 forecast ahead of the iPhone maker’s first-quarter earnings report.