Technology

Apple (AAPL) is expected to “slightly beat” Q2 earnings and revenue estimates, driven by “better than expected product shipments and App Store outperformance,” Morgan Stanley said in a note to clients Monday. The brokerage expects Apple to post Q2 earnings of $1.51 per share and revenue of $91 billion, compared with consensus estimates of $1.50 and $90 billion, respectively. Morgan Stanley said investors will pay close attention to Apple’s performance in China, its updated capital return framework, and capital expenditures when the tech giant reports Q2 results after market close May 2. The firm anticipates Apple’s Q3 revenue at around $80 billion, down from the consensus estimate of $83.4 billion. The brokerage expects Apple’s Q3 earnings per share to be $1.22. Morgan Stanley cut its price target on Apple’s stock to $210 from $220, but reiterated its overweight rating.

Apple (AAPL) is likely to show a solid performance in the March quarter, with potential for slightly lower guidance for June, BofA Securities said in a note Monday. “The demand environment is weak and a lower guide for [fiscal Q2] could influence a pullback in shares,” the firm said. BofA said its fiscal Q2 revenue and EPS estimates stand a bit higher than Street estimates because it has factored in Vision Pro camera sales of up to $1 billion. BofA projects Q2 revenue of $91.5 billion and EPS of $1.53, compared with Street estimates of $90.3 billion and $1.50, respectively The tech giant’s fiscal Q2 results are scheduled for May 2, and BofA said it also expects a new $90 billion buyback authorization to be announced. BofA reiterated its buy rating on Apple with a price objective of $225, citing the company as a “top pick” in 2024 due to

By Emily Bary Investors don’t necessarily need to ‘step in front of’ earnings, but BofA says they could buy any pullback ahead of ‘biggest WWDC ever’ Apple Inc. is expected to beat expectations for its March quarter but deliver disappointing guidance for the June quarter, according to a Morgan Stanley analyst. That prospect already seems priced into Apple’s stock (AAPL), Morgan Stanley’s Erik Woodring wrote in a note to clients Monday, but he nonetheless sees a “tricky setup” in light of recent market volatility. See also: Some Apple Vision Pro users suffer black eyes, headaches and neck pain Apple shares have fallen 14% over the past three months, and sentiment has gotten more negative. Investors are looking ahead to the company’s WWDC event in June that’s expected to bring an artificial-intelligence announcement. “As a result, there’s a chance Apple could see a relief rally/squeeze higher on a ‘better-than-feared’ earnings report/guide,”