In a note to clients, UBS analyst Steven Milunovich provided his revenue estimate of $75.6 billion for Apple’s Q116 (December quarter) is below the analysts’ consensus and also near the low end of the company’s guidance.
In October, Apple provided the following guidance for its fiscal 2016 first quarter:
• revenue between $75.5 billion and $77.5 billion
• gross margin between 39 percent and 40 percent
• operating expenses between $6.3 billion and $6.4 billion
• other income/(expense) of $400 million
• tax rate of 26.2 percent
Milunovich’s low estimate is due to an in-line iPhone unit forecast of 75 million units, but a lower forecast for average selling prices (ASPs). The analyst doubts that Apple’s Q116 report will help the company’s stock price and expressed the belief that the current issue hampering shares is the timing of product upgrades.
The analyst also said investors seem too bearish on the company’s product pipeline while reiterating his “Buy” rating and $130 price target on Apple shares.
MacDailyNews Take: We’ll find out for sure next Tuesday at the closing bell.
Apple to release Q116 earnings, webcast live conference call on January 26th – January 5, 2016