Apple’s June Quarter Earnings Will Beat Forecasts, Morgan Stanley Says

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The analyst elevated her forecast for shipments of iPhones in the September 2022 fiscal 12 months.


Angela Weiss/AFP/Getty Pictures


Apple’s

economical outcomes for the June quarter really should be better than Wall Street expects, Morgan Stanley analyst Katy Huberty says.

Huberty recurring her Overweight score on Apple (ticker: AAPL) shares in a exploration observe on Thursday, while inching up her goal selling price to $166, from $162. She expects the two the June quarter outcomes and management’s forecasts for the September quarter to exceed expectations.

Late Thursday early morning, the stock was down .6%, to $148.24. Before, it set a file intraday significant of $150.

Huberty explained Apple shares have rallied additional than 20% since early June, a rally she attributes to 3 aspects. 1st, she mentioned, there has been a “flight to excellent significant tech names,” with Apple,

Amazon.

com (AMZN), Alphabet (GOOG),

Microsoft

(MSFT), and

Fb

(FB) all outperforming the

S&P 500

more than the identical interval. Next, she observed that advancement at the Application Retail store accelerated in June, “supporting the view of secular products and services advancement.”

Lastly, Huberty claimed, facts on Apple’s offer chain propose sturdy growth in Apple iphone generation. She elevated her forecast for shipments in the September 2022 fiscal yr to 238.5 million phones, from 231 million. 

Even with the new rally in the stock, Huberty suggests that she would buy shares heading into the start of the Apple iphone 13 in September. “We see the combination of mature substitute cycles, expanding 5G adoption, improving retail shop traffic, more time battery existence and digicam top quality, and share gains against Huawei as drivers of Iphone outperformance,” she explained.

For the June quarter, Huberty predicted income of $74.7 billion and profits of $1.02 a share. The Wall Road consensus watch is that profits will be $72.9 billion and that earnings will be $1 a share.

The outcomes are scheduled for release on July 27.

Compose to Eric J. Savitz at eric.savitz@barrons.com

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