Mobile

Apple iPhone revenue set to be key in fourth-quarter earnings

Apple iPhone revenue set to be key in fourth-quarter earnings

Apple iPhone revenue set to be key in fourth-quarter earnings

apple AAPLa market giant, is on board to unveil quarterly earnings on Oct. 27The tenthafter the market closes.

Revenue from the company’s flagship product, the iPhone, will be a closely watched metric and a focal point for the entire release.

Let’s take a deeper look at what to expect.

iPhone revenue

In its most recent edition, the company’s iPhone revenue grew 2.8% year over year to $40.7 billion on the back of strong iPhone 13 demand, accounting for approximately 49% of AAPL’s total sales in the quarter.

Moreover, the reported figure easily beat Zacks Consensus’ estimate of $38.9 billion by 4.4%, which is the fifth positive surprise out of the last six, and is undoubtedly a major highlight.

Apple iPhone revenue set to be key in fourth-quarter earnings
Image source: Zacks Investment Research

For upcoming printing, Zacks Consensus estimates iPhone revenue of $42.8 billion, indicating a 10% improvement over last year’s iPhone revenue of $38.9 billion.

However, it is worth noting that the company decided to withdraw its production of the latest iPhone 14 models due to the demand that failed to appear.

Stock performance and valuation

Year-to-date, Apple shares have held up relatively well, down 14% versus the overall market’s slump of about 20%.

Zacks Investment Research
Image source: Zacks Investment Research

The relative strength shows that market participants have respected Apple shares much higher than most, which is undoubtedly positive in the historically volatile year of 2022.

AAPL’s valuation multiples declined by a fair margin; The company’s forward earnings multiple of 22.9 times is just a tick below the five-year average and nowhere near 2021 highs of 35.6 times.

The company holds the value pattern score of C.

Zacks Investment Research
Image source: Zacks Investment Research

Quarterly estimates

Analysts were primarily optimistic about their earnings outlook, with three positive revisions to earnings estimates the bar has received over the past several months. Zacks Consensus EPS estimate of $1.26 indicates year-over-year earnings growth of a modest 1.6%.

Zacks Investment Research
Image source: Zacks Investment Research

Apple’s top line seems to be getting better, too; Zacks Consensus sales estimates of $88.5 billion indicate revenue growth of 6% compared to quarterly sales of $83.4 billion a year ago.

minimum

Revenue from the company’s flagship product, the iPhone, will be a closely watched metric on the earnings call.

As it stands, the Zacks consensus estimate suggests solid year-over-year revenue growth for the legendary product, and Apple has consistently surprised this metric lately.

Of course, the lower-than-expected demand for the iPhone 14 family of products causing AAPL to decline in production is something that cannot be ignored.

The tech giant has a solid track record of earnings, beating revenue and earnings estimates in nine of the last 10 quarters. Only in its latest editions, Apple AAPL It posted an outperformance of the stock by 5.3% and a dividend of 1.2%.

Just released: Zacks unveils the 5 best EV stocks of 2022

For several months now, electric cars have been disrupting the $82 billion auto industry. This disruption is amplified by the rise in gas prices. Even the giants of the financial industry, including George Soros, Jeff Bezos and Ray Dalio, have invested in this unstoppable wave. You don’t want to stand idly by while electric vehicle stocks rush and climb to new heights. In a new free report, Zacks reveals the 5 best EV stocks for investors. Next year, don’t look back today wishing you had taken advantage of this opportunity.>> Send me my FREE report revealing the 5 best electric vehicle stocks

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 of the best stocks for the next 30 days. Click for this free report

Apple Inc. (AAPL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The opinions and opinions expressed here are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.



#Apple #iPhone #revenue #set #key #fourthquarter #earnings

مقالات ذات صلة

اترك تعليقاً

لن يتم نشر عنوان بريدك الإلكتروني. الحقول الإلزامية مشار إليها بـ *

زر الذهاب إلى الأعلى
سيتات آورج 2022 سيتات آورج 2022