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Home / Technology / Apple stock rockets to record ‘extremely strong’ profits calm pandemic from iPhone

Apple stock rockets to record ‘extremely strong’ profits calm pandemic from iPhone



While Apple Inc. moving towards the projected launch of the first 5G-enabled phone later this year, the company just gave a sure signal that its device is still highly sought after during a global pandemic.

Apple shares AAPL,
+ 10.46%
enabled another record high on Friday, with shares that first crossed the $ 400 mark and eventually gained 10.5% while analysts hailed the company’s “extremely strong” results. The smartphone giant easily eased the pandemic in its June quarter, according to an announcement Thursday, giving revenue of $ 59.7 billion that came in clear values ​​above estimates even earlier this year, before analysts lower their forecasts to calculate closed stores, weaker budgets, and other impacts from COVID-1

9.

See more: Apple beats profits and announces stock split, sending shares to record highs

“Apple’s results have been extremely strong and when one considers the COVID-19 pandemic it is even more impressive,” wrote Citi analyst Jim Suva, who reiterated a stock buying estimate and raised his price target to $ 450 from $ 400.

Piper Sandler analyst Harsh Kumar took a similar view.

“Overall, the pandemic seems to have a limited impact on Apple,” he said in a note to customers. “In fact, it may be the case that the Mac and iPad are actually benefiting because of work from home and distance learning trends.”

Revenue from the Mac rose to $ 7.1 billion from $ 5.8 billion, while revenue from the iPad rose to $ 6.6 billion from $ 5 billion.

Kumar met the company’s expectations for a strong back-to-school season this year and raised its price target to $ 450 from $ 310 while maintaining an overestimation rating in stocks.

RBC Capital Markets analyst Robert Muller wrote that the iPhone SE helped Apple raise a new height for its installed base, contributing to smartphone trends that make it “continue to gain confidence behind Apple’s ability to direct flows recurring money from his loyal customer base. “

Muller is optimistic about smartphone trends over the next few quarters even after Apple confirmed that its next phone will be delayed by “a few weeks” compared to last year, when it started selling new models in late September. . This will delay the next release of the iPhone in Apple’s next fiscal year, which begins in October.

“Recall that the iPhone X, a highly anticipated form factor update, was released in early November and released a still quarterly iPhone revenue result,” he wrote. “Despite anticipating a 5G update, Apple expects the latest performance of the iPhone (which topped expectations) to continue over the next quarter.”

He values ​​the stock at higher values ​​as he raises his price target to $ 445 from $ 390.

Read: Pandemic? Antitrust? No worries about Big Tech, which ruined $ 200 billion in sales anyway

JP Morgan’s Samik Chatterjee wrote that Apple “surprised even the high expectations for the value of F3Q / C2Q profits by hardly losing a loss”, and he was optimistic about the tone of management to see the current quarter.

“Overall, Apple’s ability as a company in a segment of consumer discretionary products to completely reduce sequential slowdown in F3Q / C2Q despite massive downtime speaks volumes about customer service for products, as well as the momentum of a product cycle. which makes them willing to bypass the traditional physical channel buying practice when required, and leads us to be more optimistic about the next 5G product cycle, ”wrote Chatterjee, who has an overweight rating. in stock and who marked his price up to $ 460 from $ 425.

Chatterjee said Apple also has an “underestimated enterprise opportunity” as more people use Macs and iPads for remote work.

“While the strength in the quarter was expected, led by management’s guidance in the recent earnings call, guidance on unit growth trends to continue in F4Q is likely to surprise investors given that most expected it to be a screen only for these products, ”he wrote.

Canaccord Genuity’s T. Michael Walkley was also encouraged that the company expects double-digit growth for all hardware categories except the iPhone in the September quarter, and he estimated the results of the “explosion” for the June period as it raised its price target to $ 460 from $ 440 and keeping a stock purchase estimate.

See also: US economy plunges to titanic level of 32.9% in Q2 and indicates retreat

At least 19 analysts raised their price targets on Apple shares after the report, according to FactSet, and the new average target stands at $ 397.65. Of the 38 analysts followed by FactSet covering Apple shares, 26 rated it a purchase, eight rated it an expectation and four rated it a sale.

Apple plans to make a four-to-one split of its shares, which will affect record shareholders from August 24th. Shares will start trading on a regulated shareholding basis on Aug. 31, a move by Citi’s Suva said it “is important for retail investors.” Apple said the stock split aims to “make shares more accessible. for a wider investor base “.

Shares have risen 39% over the past three months as the industrial average DJIA Dow Jones,
+ 0.43%
has increased 8%.


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