Apple’s Next Earnings Will Come in Strong, Morgan Stanley Says

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July 15, 2021 12:35 p.m. ET

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The expert raised her forecast for shipments of iPhones successful the September 2022 fiscal year.

Angela Weiss/AFP/Getty Images

Apple’s fiscal results for the June 4th should beryllium amended than Wall Street expects, Morgan Stanley expert Katy Huberty says.

Huberty repeated her Overweight standing connected Apple (ticker: AAPL) shares successful a probe enactment connected Thursday, portion inching up her people terms to $166, from $162. She expects some the June 4th results and management’s forecasts for the September 4th to transcend expectations.

Late Thursday morning, the banal was down 0.6%, to $148.24. Earlier, it acceptable a grounds intraday precocious of $150.

Huberty said Apple shares person rallied much than 20% since aboriginal June, a rally she attributes to 3 factors. First, she said, determination has been a “flight to prime large tech names,” with Apple, Amazon. com (AMZN), Alphabet (GOOG), Microsoft (MSFT), and Facebook (FB) each outperforming the S&P 500 implicit the aforesaid period. Second, she noted that maturation astatine the App Store accelerated successful June, “supporting the presumption of secular services growth.”

Finally, Huberty said, information connected Apple’s proviso concatenation suggest beardown maturation successful iPhone production. She raised her forecast for shipments successful the September 2022 fiscal twelvemonth to 238.5 cardinal phones, from 231 million. 

Even with the caller rally successful the stock, Huberty says that she would bargain shares heading into the motorboat of the iPhone 13 successful September. “We spot the operation of mature replacement cycles, expanding 5G adoption, improving retail store traffic, longer artillery beingness and camera quality, and stock gains against Huawei arsenic drivers of iPhone outperformance,” she said.

For the June quarter, Huberty predicted gross of $74.7 cardinal and profits of $1.02 a share. The Wall Street statement presumption is that gross volition beryllium $72.9 cardinal and that net volition beryllium $1 a share.

The results are scheduled for merchandise connected July 27.

Write to Eric J. Savitz astatine

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