Lots of moving parts when considering Apple’s upcoming earnings report. Apple 3.0 ran part of a note from JP Morgan analyst Samik Chatterjee on Thursday, considering a few factors.
First, he expects Apple to beat the Street’s expectations for the recently ended holiday-quarter, though it will be a “modest beat,” in his estimation
Working in the quarter’s favor, an iPhone 13 cycle that’s “tracking better than investor expectations”
Keeping the beat “modest,” headwinds warned against on Apple’s last earnings call. While Apple did not offer guidance for the quarter on the call, it did say that supply constraints that cost Apple about $6 billion in the September-quarter would be larger in the December-quarter.
What Chat-Man’s really excited about, though, is the current quarter. Headed into the holidays, a lot of analysts said they weren’t worried about any missed iPhone sales due to supply constraints since people who couldn’t get them in the December-quarter would go ahead and pick them up in the March-quarter. He expects playing catchup to work for Apple this quarter and for the rest of FY22.
Mr. Chatterjee has an “Overweight” rating on Apple shares. His price target on the shares is $210.
