Result of the AAPL: "the worst is probably behind us", analysts say



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The profits of the AAPL for the second quarter of the fiscal year (the first quarter) will be announced later today. According to analysts, AAPL revenues in the second quarter will be down 5 to 6% from the previous year, which does not lead to much pessimism about the prospects of the company …

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Tuesday will see the announcement of the AAPL business turnover for the second quarter of 2019, and the Wall Street consensus is that Apple will announce figures somewhere around the middle of its forecast of $ 55-59 billion. This would represent an annual decline of about 5 to 6%.

Internal business indicates that analysts are "essentially divided between bullish and neutral" with regard to stock prices.

This is partly, says the report, because known and anticipated bad news is already reflected in the current share price. The weak iPhone sales, the price cuts and a highly competitive market in China are at the rendezvous.

UBS, for example, says that "low expectations, results / indicators should be self-evident". In other words, no one expects good news at this point. As a result, even if revenues are down and expectations for the third quarter are modest, it is unlikely to trigger a significant sale of AAPL shares.

Credit Suisse believes that while estimating that iPhone sales have declined sharply compared to the previous year, it also believes that things can only improve from now on.

"The worst is probably behind us this cycle supported by less good supply chain data points," wrote analysts led by Matthew Cabral to customers last week.

Wells Fargo said it was hard to ignore the weak demand for iPhone, but that it was largely embedded in the price of the action, which is encouraging for the Qualcomm regulation and the development of subscription services by Apple. With subscriptions and other service keys, there is one thing that really matters, she says.

"The rate of expansion of Apple's installed base should remain a key goal," added analysts.

Morgan Stanley, a notable bull of the apple, says that there are three reasons to be optimistic.

  • They believe that investors underestimate the Apple platform, mobile applications of IOS users representing 10 times more than Android users.
  • Analysts have discovered that iPhone data points have begun to stabilize.
  • The settlement reached between Apple and Qualcomm increases Apple's chances of launching an iPhone 5G in 2020, a price that the stock generally starts to value six to nine months in advance, they said.

Katy Huberty is also expecting the rate of decline in iPhone sales to slow as growth in services accelerates.

Among the analysts cited, Raymond James has the most pessimistic view.

Apple has to deal with a serious deterioration of the composition (which forces us to reduce our estimates for fiscal year 2010), and the calculation simply does not work for a thesis rising services.

Even though he considers the Qualcomm settlement as a "bright spot" in a rather bleak vision, he is assured that Apple will now be able to take advantage of the demand for 5G phones by 2020.

AAPL must report its results at 2:00 pm Eastern Standard Time / 5:00 pm Eastern Time, and we will of course provide you with all the numbers and all the news.

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