Apple’s Q2 Earnings Report: What to Expect and How it Can Impact Your Investments
Apple, the world’s most valuable company, is set to release its third-quarter earnings report today after the closing bell. With its share price up 15.35% this year, investors are eagerly awaiting the results, especially in light of weak demand and rising competition in China.
Analysts are optimistic, pointing to positive catalysts such as growth in Apple Intelligence and stabilizing demand for the iPhone 16. However, sales in China, the development of Apple Intelligence, and the performance of its services division will be closely watched.
Analysts expect Apple to report sales of $84.377 billion, a 3.15% increase year-on-year, and earnings per share of $1.34, up 6.35% from last year. China remains a critical market, with a predicted 2.6% drop in sales due to competition from local manufacturers.
Apple’s plans for artificial intelligence, unveiled at WWDC24, have boosted its share price. The release of Apple Intelligence with iOS 18.1 is expected to enhance Siri and drive device upgrades with the iPhone 15 Pro.
Analysts have set an average target price of $226.18 for Apple, indicating fair valuation. However, InvestingPro’s Fair Value model suggests a potential downside risk of over 21%.
In conclusion, today’s earnings results will need to exceed expectations to boost the share price. Analyst targets and valuation models indicate caution, so market sentiment could be swayed by the company’s future guidance.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should evaluate risks before making any investment decisions.