Apple Inc. is set to announce its financial results for the second quarter of the 2024 fiscal year on Thursday, May 2nd. Recently, analysts from Morgan Stanley lowered their target stock price.
They lowered the target price from $220 to $210 but reiterated their "overweight" rating on Apple. Analysts believe that Apple's revenue and earnings per share (EPS) for the second quarter will slightly exceed expectations. Due to the better-than-expected earnings report, Apple's stock price might see a relief rebound or increase.
The expected profit growth for Apple's second quarter is primarily driven by stable demand for iPhones and iPads, a slight increase in Mac shipments, and strong performance in services. The projected revenue is $91 billion, with earnings per share at $1.51, both higher than Wall Street's expectations of $89.8 billion and $1.50, respectively.
Investors will be watching Apple's performance in the Chinese market, the updated capital return framework, and capital expenditures. Analysts expect Apple's share repurchase authorization to increase by $90 billion, with dividends growing year-over-year to $0.26 per quarter.
图源：proactiveinvestors
Bank of America analysts also believe that Apple's performance in the second quarter will exceed expectations, forecasting revenue of $915 billion and earnings per share of $1.53.They forecast that Vision Pro's sales will reach as high as $1 billion.。
The analysts at Bank of America wrote, "While we acknowledge the weak demand environment, we believe the stock has already reflected this (down 14% year-to-date), and we maintain relatively unchanged overall expectations for the year."
They reiterated their "buy" rating on Apple Inc. with a target price of $225, citing the company's benefit from rising gross margins in generative artificial intelligence and momentum in its services business.
Future catalysts include the release of generative AI and the launch of the iPhone 16 in the fall. Supply chain rumors suggest that Apple may introduce four new iPhone models equipped with the A18 application processor to enhance AI/machine learning performance.
Source: proactiveinvestors
原文始发于微信公众号（MicroDisplay）：The agency predicts that Vision Pro's sales will reach as high as 7.245 billion yuan
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