Analyst Wamsi Mohan is looking forward to a record December quarter — and a record March as well.
From a note to clients that landed on my desktop Tuesday:
Demand for products strong; Ship times still extended We expect Apple (AAPL) to report a record Dec qtr of almost $106bn in revenue, driven by strength across the portfolio and favorable FX. Despite the later launch of iPhones, demand for the higher end models remains robust creating a strong average selling price (ASP) uplift q/q. We also expect upside in Mac revenue, where we estimate that AAPL sold over 7mn units. We expect Services to grow 18% y/y (app store growth of 30%) and overall company gross margins of 38%. Despite the near term strength, we maintain Neutral as we view that positive estimate revisions are likely to peak by the March qtr and view risk reward as balanced.
March qtr benefits from supply constraints Given the delayed launch of the iPhones, we expect some of the strength of the new iPhone 12 (esp. Pro models) to persist into the March qtr driving 29% unit and 37% revenue growth. We expect overall March qtr revenue guide to beat consensus with upside driven from iPhones and easy compares in other categories.
Maintains Neutral rating, raises price target to $150 from $135.
My take: With the stock trading above $143, Mohan is playing catch-up.
CORRECTION: An early version of this story had a $3.36 trillion-dollar error in the headline.