Evercore: Apple buyside expectations are sky high

According to analyst Amit Daryanani, the big money is looking for a $2-$3 billion upside.

From a note to Evercore clients that landed on my desktop Sunday:

Buyside Expectations: Street is modeling dec-qtr at $88B/$4.53 vs Apple’s guide that stood at – $85.5B-$89.5B sales and implied EPS at 4.49. We think buyside is looking for clear upside vs dec-qtr expectations with revenues expected to be in the range of $90-$91B and EPS in the $4.60 range. Street is modeling dec-qtr sales at $88B, so we think buyside expects $2B-$3B in upside here given favorable iPhone units (street estimating iPhone units at 68M, up 3M y/y). For March-qtr, street is modeling sales down 30% q/q to $62.4B and EPS of $4.54 implying GMs come in at 38.1% (~flat q/q). (emphasis mine)

Maintains Outperform rating and $360 target. 

My take: $90-91 billion? Could be. Or could be numbers whispered to set Apple up for a fall.

2 Comments

  1. Kirk Burgess said:
    There must be a typo there in the last sentence: $4.54 EPS for March quarter is impossible on $62.4B revenue at 38.1% GM.

    0
    January 26, 2020
    • “$4.54 EPS for March quarter is impossible on $62.4B revenue at 38.1% GM.”

      Agreed. Looks like Q1’s EPS was swapped for Q2. Street estimates for Q2 2020 are closer to $2.88.

      1
      January 26, 2020

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