What Analysts Are Saying About Apple After Earnings

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Apple Inc. (NASDAQ: AAPL) released fiscal third-quarter financial results after markets closed Tuesday. There was a lot of noise surrounding this earnings report, as Apple’s fellow FAANG stocks Netflix and Facebook took a dive after their earnings reports. However, Apple managed to weather the storm, and so did its analysts.

24/7 Wall St. has included some highlights from Apple’s earnings report, as well as what analysts are saying about the stock after the fact.

The iPhone giant said that it had $2.34 in earnings per share (EPS) on $53.3 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $2.18 in EPS on $52.34 billion in revenue. In the same period of last year, Apple posted EPS of $1.67 on revenue of $45.41 billion.

In this latest quarter, the firm reported its product sales as follows:

  • iPhone moved 41.3 million units, up 1% year over year. The segment pulled in revenues of $29.91 billion, an increase of 20%.
  • iPad reported 11.6 million units sold, an increase of 1%. Revenues decreased 5% to $4.74 billion.
  • Mac sold 3.72 million units, a decrease of 13% from last year. Revenues decreased 4% to $5.33 billion.
  • Services revenues increased 31% to $9.55 billion.
  • Other Products revenues increased 37% to $3.74 billion.

Regarding guidance for the fiscal fourth quarter, the company expects to see revenues in the range of $60 billion to $62 billion and gross margin of 38.0% to 38.5%. The consensus estimates call for $2.65 in EPS on $59.57 billion in revenue.

Here’s what analysts had to say:

  • DZ Bank reiterated a Buy rating.
  • Nomura has a Neutral rating with a $190 price target.
  • Needham has a Buy rating and raised its price target to $220 from $210.
  • BMO Capital Markets reiterated a Hold rating with a $199 price target.
  • RBC has an Outperform rating with a $225 price target.
  • Loop Capital has a Buy rating with a $220 price target.

Shares of Apple were last seen up 4% at $198.25 on Wednesday, with a consensus analyst price target of $203.22 and a 52-week trading range of $149.16 to $199.26.