UBS analysts maintained a “neutral” rating on Apple (AAPL, Financial) and maintained an unchanged price target of $236, saying that iPhone sales were now in line with expectations. It comes after November sell-through for iPhones dropped more than 8% year on year to lower forecasts for iPhone sales in the December quarter.
iPhone unit estimates were lowered to 77 million from 82 million and revenue to $67.2 billion from $69.7 billion. The move represents a 4 percent year-over-year revenue decline versus former expectations of flat growth. The analysts now expect total December quarter revenue of $120.8 billion, down 2% from the prior estimate of $123.3 billion and short of the consensus of $124.9 billion. The consensus earnings per share forecast for the quarter was also cut to $2.36 from $2.31, and the EPS came in at $2.25, which is a $2.36 estimate.
Soft in iPhone sales dampens hopes that are normally at their highest this season. However, a near 1% downward revision of gross revenue is offset by robust App Store performance, which pushes services revenue by 1%.
The challenges notwithstanding, Apple’s fundamentals are strong, with a gross profit margin of 46.2 percent and trailing 12-month revenue growth of 2%. Wedbush Securities remains optimistic about Apple’s long-term performance, given advances in artificial intelligence.
Apple is currently trading at a lofty $3.79 trillion valuation, which is stretched out clearly, but with a diversified and smarter portfolio, coupled with strategic moves such as AI and global partnerships, perhaps the US tech giant could become better suited for bearing the beatings of the fast-changing tech world.
This article first appeared on GuruFocus.
UBS, one of the world’s largest financial institutions, has recently announced that it is significantly lowering its projections for the upcoming holiday quarter. The Swiss bank cited a variety of factors, including ongoing supply chain disruptions, labor shortages, and rising inflation, as contributing to a more challenging economic environment.
The revised projections from UBS are expected to have a ripple effect across global markets, with many investors closely monitoring the situation. The news comes at a time when concerns about the state of the global economy are already running high, with many experts warning of potential downturns in the coming months.
As we head into the holiday season, businesses and consumers alike will need to be prepared for a potentially more challenging economic landscape. Stay tuned for further updates on this developing story.
Tags:
UBS, holiday quarter, projections, financial forecast, market analysis, investment banking, economic outlook, global trends, business news, stock market, financial services, wealth management
#UBS #Slashes #Holiday #Quarter #Projections
Leave a Reply