Benzinga - Analysts at Goldman Sachs expect Apple Inc (NASDAQ:AAPL) to beat the $1.19 consensus earnings per share forecast with an EPS of $1.21 when the company issues earnings on Aug. 3, based on the strong performance of Mac and Services.
The Apple Analyst: Michael Ng reiterated a Buy rating on the Cupertino, California-based tech giant, and set a 12-month price target of $222 on the stock.
The Apple Takeaways: Ng said Goldman's Mac revenue forecast of $9.4 billion will come in significantly higher than FactSet's consensus Mac revenue of $6.3 billion. Goldman's projection is substantiated by recent International Data Corporation estimates showing a year-over-year increase of 10% in Mac units.
More on revenue beats, Goldman said it expects Services revenue to hit $21.8 billion — an 11% year-over-year growth — which would come ahead of the consensus $20.7 billion estimate.
Read Also: Will Jerome Powell Be Hawkish Or Dovish? How These 5 ETFs Could React To The Fed’s Rate Decision Wednesday
The analyst said expected Services growth is attributed to a surge in App Store spending, growth in advertising, continuous content investments in AppleTV and a more benign foreign exchange headwind.
Ng acknowledged concerns around valuation and downside risks due to shares of Apple being up 48% year-to-date, fueled entirely by multiple expansion. The analyst remained positive, emphasizing the growing iPhone installed base is a cornerstone for increasing monetization per user and supports Apple’s premium valuation.
AAPL Price Action: Shares of Apple are trading 0.61% higher to $193.97, according to data from Benzinga Pro.
Read next: Alphabet Q2 Earnings Preview: Earnings Estimates, Artificial Intelligence Growth And Other Key Factors To Watch
Latest Ratings for AAPL
Mar 2022 | Barclays | Maintains | Equal-Weight | |
Feb 2022 | Tigress Financial | Maintains | Strong Buy | |
Jan 2022 | Credit Suisse | Maintains | Neutral |
View the Latest Analyst Ratings
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read the original article on Benzinga
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.