After yet one more lengthy stretch of doom and gloom main as much as Apple’s fiscal second-quarter earnings report on Tuesday, the corporate racked up yet one more win. The tide truly turned early Tuesday morning, and Apple shares ended up closing at simply over $169, up about 2.three% on the day. Apple then turned in one other strong quarter, and shares rose an extra three% after hours. iPhone gross sales misses ever so barely, coming in at 52.2 million models in comparison with the 53 million analysts have been anticipating. But the corporate reported document second-quarter income, June-quarter steering that was higher than many had feared, and it introduced plans to purchase again a further $100 billion price of its inventory.
Once once more, buyers have been happy they usually confirmed it with their wallets as Apple shares climbed. As for analysts, let’s check out what a number of the most noteworthy monetary analysts who cowl Apple needed to say concerning the firm’s Q2 2018 outcomes.
Amit Daryanani, RBC Capital Markets: “AAPL – Proving Skeptics Wrong…Again”
AAPL reported a powerful March-qtr beat and guided June-qtr gross sales forward of expectations – the quarter was all of the extra spectacular given how adverse sentiment was heading into EPS name. March-qtr print got here in at $61.2B/2.73 vs. road at $61B/2.69 however extra spectacular was June-qtr information for revenues within the vary of $51.5-53.5B (vs. buyside at $46-48B). The power in revenues displays continued progress from iPhones (+14% income, three% unit progress) coupled with acceleration in providers (+31% y/y) and different (wearables, +37% y/y). We assume slowly however absolutely, AAPL is morphing into extra than simply an iPhone story and is displaying means to maintain income progress no matter iPhone trajectory. Finally, AAPL introduced an incremental $100B buyback program (no timeline to complete it, we expect in 12 months) and raised dividend by 16%. Net/Net: We assume the print/information have been a notable optimistic for AAPL. We see a number of levers that AAPL can use to transform low single digit unit/gross sales progress to mid-teens EPS progress: 1) Gross margin upside from price downs, NAND tailwinds & yield efficiencies, 2) Services progress, & three) Capital allocation. Maintain OP and $203 worth goal.
Robert Cihra, Guggenheim Partners: “iPhone ASP and Services Keep Driving Growth”
Investors have thus far appeared unimpressed by the iPhone X uptake since its launch however we expect they need to be MORE…