Apple Inc. AAPL reported strong Q1 results, with revenue and EPS ahead of expectations.
Investor focus will likely “shift almost entirely” to iPhone 8 and the stock seems “ripe for picking” ahead of the upcoming cycle, Baird’s William Power said in a report. He reiterated an Outperform rating on the company, while raising the price target from $133 to $145.
Q1 Results
Apple reported consolidated revenue of $78.4 billion and EPS of $3.36, marginally ahead of Baird’s estimates of $76.7 billion and $3.16 estimates, respectively. The beat was driven by higher iPhone sales and strong margins, analyst Power noted.
The company generated $23.7 billion in free cash flows and returned $15 billion to shareholders during the quarter.
Concerns Allayed
Apple guided to Q2 revenue of $51.5-$53.5 billion, slightly below consensus expectations, and included a currency headwind of $1.2 billion.
“FQ2 guidance was also largely in line with expectations, which we believe should allay near-term investor concerns,” Power wrote.
Moreover, concerns would be ease as investor focus shifts to the iPhone 8 growth opportunity, the analyst stated, while adding that Apple seemed “well positioned at the high end of the market” and that the company could generate strong iPhone 8 sales.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.