Apple next Wednesday will easily beat the Street’s consensus, says analyst Daniel Ives.
From a note to clients that landed on my desktop Friday:
We are expecting the iPhone 12 supercycle theme to be front and center on Wednesday after the bell when Cupertino delivers another strong upside March quarter based on our analysis. Our Asia supply chain checks have pointed to another robust quarter for Cook & Co. on the iPhone 12 with builds that have remained relatively constant and upward moving ASPs giving Apple tailwinds likely in the March and June quarters.
The Street is looking for total revenues of $77 billion and EPS of $0.98, both of which should be easily surpassed by Apple this quarter in our opinion.
That said, all eyes will be on June guidance with the Street worried that a moderation in growth and lingering chip shortage will spoil the supercycle party in Cupertino, which we strongly disagree with. We also are expecting another strong services quarter which is slated to exceed $65 billion of revenues in FY21 and remains key to the re-rating in Apple’s stock over the past year.
Maintains Outperform rating and Street-high $175 target.
My take: Ives set that target three months ago and hasn’t moved it since. For him, that’s a long time.