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On Tuesday, Apple presents its results for the March quarter, a turbulent period for the company and for the stock.
Analysts surveyed by FactSet expect an average profit of $ 2.36 per share and will look for signs of rebound after Apple's weak quarterly results (AAPL – Get Report), which have been held back by weak sales of IPhone in China. Apple's shares were virtually unchanged on Monday, closing at $ 204.61; they are up 29.3% since the beginning of the year.
Here's what Apple analysts expect to see in the company's results on Tuesday after closing.
TheStreet will post live Apple's results on the blog post-closing on April 30th. Please consult our home page so for more details.
1. A rebound in China
Despite Apple's efforts to move away from the iPhone-centric regime and turn to services, iPhone sales remain for the moment Apple's daily bread and make up the bulk of his business figure. In a note last week, DA Davidson Tom Forte pointed out that sales in China accounted for 19.6% of total sales in 2018, which is why the weakness of consumer spending in this country has had such a disproportionate impact on the December results of Apple.
China remains an important area of uncertainty for Apple, but many analysts suspect that the worst may be over. In addition, Forte said it would listen to "the management 's view on how to further thwart the decline in iPhone sales and its prospect of a rebound in sales. iPhone long term, "added Forte.
2. Service Updates
Apple's earnings report will be the first Tuesday since its sensational launch event at the end of March, which offered a whole new range of services, including Apple Arcade, Apple TV +, Apple Card and Apple News +. No pricing or launch date has yet been announced for Arcade or TV +, but investors will certainly be listening to early results on Apple News +, which was launched in March, as well as more ample details.
These details will help analysts and investors reassess the value of Apple: "From an evaluation point of view, we continue to believe in a sum of points [basis] Apple's service sector accounts for between $ 400 and $ 450 billion autonomously and Street is reassessing the name on this premise despite the maturation cycle of the iPhone, "Wedbush's Dan Ives wrote in a statement. note from last week.
3. An increased dividend
Apple's earnings could contain a welcome reward for investors, according to CFRA Research's Angelo Zino: "We believe Apple will unveil a new $ 100 billion stock authorization plan and increase its dividend by 10 percent. 15% when he publishes his results, "he wrote on Monday. .
Apple's very strong balance sheet, which includes about $ 245 billion in cash and investments, and about $ 115 billion in debt at the end of December 2018, seems to lend itself to a new plan of authorization. actions. Zino has set a price target of $ 220 over 12 months for Apple's stock, based on "a trough of iPhone earnings and greater traction of services / portable equipment supporting multiple expansion," he said. -he writes.
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