Apple. AAPL The stock fell more than 3% in pre-market trading on Thursday after the company reported disappointing first-quarter results for the fiscal year.
Apple analyst: Wedbush Daniel Ives We maintained our Outperform rating and $175 price target.
Keybank Capital Markets Analyst Brandon Nispel We maintained our Overweight valuation and $177 price target.
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Apple paper: Apple’s first-quarter iPhone earnings miss reflects supply chain issues and an 800 basis point foreign exchange headwind pushed about 8-9 million units out of the December quarter, it said. says Ives.
“Overall, given the supply chain catastrophe, Apple believes this is better than the feared iPhone numbers and ultimately is more of a supply issue than a demand issue,” the analyst said. Stated.Apple appears to be cutting some orders Mac, iPad When AirPods He said it will reflect a softer consumer environment over the next few quarters.
Ives is also the most important China Regional revenues declined 7% year-over-year, but grew on a currency-adjusted basis.he called it an “impressive performance” COVID-19 (new coronavirus infectious disease) Lockdown in November and December.
“In a nutshell, with China front and center as the key to 2023 and the demand environment ultimately being more resilient than Street anticipates, these results are across the board. I think it’s positive,” Ives said.
Below are Ives’ takeaways from the earnings call.
- continuous consumer iphone Demand is there despite the impact of foreign exchange and macro headwinds.
- Year-over-year revenue growth in the March quarter is likely to flatten out in the December quarter as iPhone revenue growth accelerates.
- Mac and iPad sales are expected to decline by double digits in the March quarter due to the impact of the macro environment.
- The service is growing year-over-year, despite continued advertising and gaming headwinds.
“Our initial overall view was necessary given the currency, supply chain issues and macroeconomic uncertainty, but potential demand from China and iPhone 14 Pro The front was net more positive than feared, with many bears setting fire to crowded theaters headed for print,” Ives said.
KeyBanc recommends owning Apple. Analyst Nispel said Apple’s below-consensus results were more in line with KeyBanc’s estimates. The guidance gave the company no reason to change its estimates, he added. rice field.
An active base of more than 2 billion installed devices and Apple’s comments on China’s reopening are positive, analysts said.
“User growth is still the most important driver of the business, ignore all the noise of supply, macro and FX, and the worst is largely past,” he added.
Keeping Apple’s Flywheel franchise intact, Munster said: Co-founder of Deepwater Asset Management Gene Munster He noted that in his 20 years of reporting to Apple, the results have fallen short of expectations only three times.
“Apple’s Flywheel franchise is intact,” said Munster. He mentioned over 2 billion installed active devices and his over 935 million paid subscriptions signed up through the App Store. The company has added over 150 million paying subscribers in the past year. Amazon Inc. AMZN Prime subscription, he said.
Apple’s business is subject to supply chain and macro impacts, but it maintains innovation excellence in its core products, the fund manager said. Potential new products such as augmented reality and cars are optional, he added. He also mentioned a loyal, enthusiastic and growing customer base.
“All signs point to a return of sunny days for Apple,” said Munster.
Price action: Apple shares ended Thursday’s session up 3.71% at $150.82, but fell 3.22% to $145.96 in after-hours trading, according to Benzinga Pro data.
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