Anxiety over Apple’s earnings
There is always a feeling of anxiety prior to Apple releasing its earnings every month. Analysts are always on the alert ahead of the Apple’s quarterly reports. A close watch on Monday’s reports reveals the anticipated panic mode.
From the reports, two major analysts gave an insight of their views on the reports submitted by Apple. One of the analysts, FBN, provided both a positive and a negative opinion of the reports. Giving the two-sided notions offers other analysts a wide range of different perspectives and angles to look for whichever manner both the company and stock heads to. Even though the company maintained its earlier outperform rating together with $155 target, it underwent various adverse effects as well. Some of these concerns were; the losses it incurred from the shares in China, its futile attempts to enter the Indian market, its profound gradual smartphone market, and last but not least, the diminution gross incomes for iPhone.
FBN released a report on 1 Jan which indicated undesirable report made by Nikkei about the iPhone production. The report somehow raised speculations from several analysts on the appraisal cuts. A similar outlook observed in the previous year was after April’s report when Apple pierced the iPhone SE despite concerns on the abatement of iPhone6.
Meanwhile, FBN feels that investors should at present worry about the country’s tax reports and news. This anxiety is so now because of the recent failure by Trump’s administration concerning its healthcare amendment. Since Trump’s powering in, Apple investors have been anticipating for lower tax rates in addition to the introduction of repatriation holiday which will give the company an ample chance of retrieving back significant amounts of dollars to the country. Upon receiving no news of this happening to taxes in the possible one week to come, it is more than likely that buyback will increase from the year’s substantial dividend rise which will, in turn, wound the stock. From the above observation, it is more than likely that Apple anxiety mode is bound to reoccur time and time again. Therefore, this is a little reassurance to the investors to be aware in case it happens. It is with anticipated emotions for the analysts to observe Apple making earnings. In the event of no ongoing efforts in the decrease of the tax rates, these feelings are likely to be felt even more in this year.
The other analysis was made by Susquehanna. Following the meetings that took place last week in Asia, it is a possibility that Apple intends to construct as well as transport around 100 million iPhone units midway this year. This estimate has decreased as noted from the previous average of 110 to 115 million iPhones. This might imply that there are few features in the iPhone 8 that have not yet been prepared in large number. This is similar to the previous delays that were felt during the launch of iPhone 7 caused by the little provisions of the dual lens camera.