June quarter for Apple appears to be less gloomy than previously predicted

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JP Morgan predicts that Apple will have a better-than-expected performance for the June quarter compared to the expectations of Wall Street, despite problems with its supply chain and general macroeconomic conditions.

JP Morgan analyst Samik Chatterjee wrote in a note to clients viewed by AppleInsider that he is “not as nervous as the Street” about Apple’s impending earnings announcement on July 28. There are some medium-term uncertainties, but he believes revenue and earnings per share to be resilient.

Chatterjee feels that forecasts for the near future are better than expected, which is in contrast to the conservative guidance that Apple provided during its most recent earnings conference.

Also read: Podcast of the AppleInsider discusses 15 years of the iPhone and the M2 MacBook Pro

The analyst believes that improved supply chain dynamics will “overpower” the slight demand slowdown and Apple’s forecast of a $4 billion to $8 billion revenue hit in the June quarter. His expectations are now in line with the sell-side consensus but better than the buy-side forecasts.

While Chatterjee predicted $82.1 billion in revenues in the June quarter, Wall Street is anticipating $82 billion, which is close to what he predicted. In any case, his expectation is greater than the $78 billion average of low and buy-side estimates.

As an example, Chatterjee asserts that the supply constraints will likely have no effect on products other than Apple’s Macintosh. According to his estimations, the revenue loss is at the lower end of the range of $4 billion to $8 billion.

On the other hand, Chatterjee has somewhat lowered his revenue and earnings forecasts for the upcoming quarter. ” According to him, if consumer spending slows, the Mac and iPad markets could see less growth.

He does add, though, that Apple’s pricing power and capacity to repurchase shares are likely to erase the correction. As a whole, Chatterjee thinks Apple shares are well-positioned for outperformance.

For the next 12 months, the analyst expects Apple’s share price to be $200, which is based on a P/E ratio of 30x for his 2023 profit forecast of $6.73.

Also read: Apple has announced a price increase in Japan for its iPhone 13

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