Apple Q1 Earnings Preview: Analyst Sees 'Little Upside' Ahead - Apple (NASDAQ:AAPL)

All eyes will likely be on the iPhone and China when Apple Inc AAPL reports first-quarter financial results after market close Thursday.

Here's a look at the analyst earnings estimates, new comments from analysts and key items for investors to watch

Earnings Estimates: Analysts expect Apple to report first-quarter revenue of $124.13 billion. That’s up from $119.58 billion in last year's first quarter, according to data from Benzinga Pro.

The company has beaten analyst revenue estimates in seven straight quarters and nine of the last 10 quarters overall.

Analysts expect Apple to report first-quarter earnings per share of $2.35, up from $2.18 in last year's first quarter. The company has beaten analyst estimates for earnings per share in seven straight quarters and nine of the last 10 quarters overall.

What Analysts Are Saying: Analysts have been mixed on Apple in recent weeks ahead of the quarterly financial results.

Oppenheimer analyst Martin Yang downgraded Apple stock from Outperform to Perform in a new note, while removing a price target of $250.

The analyst said a weaker outlook for China and lower than expected iPhone sales could hurt the first quarter.

"We see a twofold challenge ahead for iPhone growth: 1) stronger competition in greater China and 2) lack of compelling Apple Intelligence and generative AI apps to accelerate near-term device replacement," Yang said.

Yang said Apple's market share in China could continue to decline and be limited due to increased competition from Android phones.

Yang said lower iPhone sales could also see the stock underperform with a premium stock valuation.

"We see little upside to Apple's valuation and believe it is hard to justify its premium multiple with slower iPhone growth and Apple's uncertain role in the early stages of gen AI adoption among consumers."

Bank of America analyst Wamsi Mohan trimmed iPhone sales estimates in a recent note. The analyst remained bullish on Apple with a Buy rating and $253 price target.

Mohan said despite lower iPhone sales, the company's strong gross margins and Services growth could see a limited impact on earnings.

The analyst also sees Apple issuing weaker guidance for the second fiscal quarter.

Here are other recent analyst ratings on Apple and their price targets:

Rosenblatt: Maintained Buy rating, $262 price target
Wedbush: Reiterated Outperform rating, $325 price target
Goldman Sachs: Maintained Buy rating, lowered price target from $286 to $280
Barclays: Maintained Underweight rating, lowered price target from $184 to $183
Loop Capital: Downgraded from Buy to Hold, $230 price target
JPMorgan: Maintained Overweight rating, lowered price target from $265 to $260.

Key Items to Watch: China, artificial intelligence and iPhones will be the headline items to watch in Apple's quarterly results and commentary.

The earnings report comes days after interest in Chinese AI company DeepSeek affected valuations of technology giants. Deepseek could also become a topic of discussion from Apple.

Apple's Services is another area to watch. The segment provided an earnings cushion from weakness in other divisions in recent quarters.

With a new White House administration in place, questions and comments about regulation, antitrust and international relations could also be key areas to watch.

Price Action: Apple stock is trading flat at $237.96 on Wednesday versus a 52-week trading range of $164.08 to $260.09. Apple stock is up 24% over the last year.

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