Apple’s earnings report could trigger an AAPL rebound

The Wall Street analysts’ consensus estimate calls for Apple to post June quarter revenue of $82.4 billion, with profits of $1.16 a share. If Apple hits these marks, it could trigger a rebound in AAPL shares.

Eric J. Savitz for Barron’s:

In a research note on Friday, J.P. Morgan analyst Samik Chatterjee makes the case that Apple can hit the current Street consensus for the quarter. Normally, that wouldn’t be saying much, but he contends that the buy side expects an earnings miss due to slowing consumer spending and wider-than-projected foreign-exchange headwinds.
Chatterjee sees iPhone and iPad sales as vulnerable to softening consumer sentiment; he projects iPhone sales in the second half of calendar 2022 will be down about 4% from a year earlier. But he’s still bullish on the company’s long-term outlook, and keep his Overweight rating and $200 price target.
In particular, he says Apple is well-positioned to outperform the market in almost any macroeconomic environment. A recession, he writes, would “showcase resilient iPhone demand driven by replacement cycles,” and would be buoyed by a substantial earnings contribution from services. And if the economy stabilizes, he adds, Apple could see upside from a rapid consumer rebound.

MacDailyNews Note: Apple is due to report Q322 earnings results after market close on Thursday, July 28, 2022.
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