Apple's Q4 Guidance: Gene Munster Says Wall Street Is 'Over-Reacting'

Influential tech investor Gene Munster has voiced his thoughts on Apple’s Q4 guidance, asserting that Wall Street’s reaction is exaggerated.

What Happened: Munster, on Thursday, criticized the market’s response to Apple Inc. AAPL’s Q4 results. In a post on X, formerly Twitter, he called for a reassessment of the consensus estimates.

“I’m thinking more about $AAPL‘s guidance. The Street is over-reacting. Taking a step back, forget about consensus estimates,” a part of his post read.

Referring to Apple CFO Luca Maestri’s comments, Munster underlined that the business would have seen a 7% growth if the quarter had 14 weeks. He pointed out this as an improvement from the 1% decline in the previous quarter.

I'm thinking more about $AAPL's guidance. The Street is over-reacting. Taking a step back, forget about consensus estimates. Luca commented that the business would grew 7% if there were 14 weeks in this quarter. That's an improvement from down 1% in the September quarter.

— Gene Munster (@munster_gene) November 2, 2023

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Why It Matters: Munster’s opinion appears after Apple reported its Q4 results which surpassed predictions, with Services and iPad revenue exceeding expectations. However, the iPhone revenue was slightly below estimates, which led to a mixed reaction on the Street.

Apple’s Q4 earnings were $1.46 per share, outperforming the consensus estimate of $1.39 per share. However, the iPhone revenue of $43.805 billion fell short of the expected $44 billion.

After settling Thursday's regular trading session up 2.07% at $177.57, Apple stock was down 0.91% to $175.95in after-hours trading, according to Benzinga Pro data.

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