Analyst Krish Sankar of investment bank Cowen is expecting Apple to report Q3 (June quarter) earnings in-line with the Street consensus. The analyst expects Apple Services and the upcoming 5G iPhone 12 to boost the company’s momentum going forward.
Mike Peterson for AppleInsider:
In a note to investors seen by AppleInsider, analyst Krish Sankar says that Apple’s strong position stems from the upcoming “iPhone 12” cycle as a catalyst for 2021 earnings; the fact that the Services segment is remaining resilient compared to hardware products; and the company’s free cash flow remaining “robust” during coronavirus.
Although the analyst said that Apple may choose not to provide guidance for the September quarter, owning Apple stock is really about the “long-term Services growth opportunity and upcoming 5G iPhone cycle.”
“The Services segment remains a bright spot, and Mac demand could see momentum into the back-to-school period,” Sankar wrote. The analyst is expecting Apple to report sales growth of 23% from the previous quarter and a total of 40 million iPhone units shipped.
For the quarter overall, the analyst forecasts revenue of $50.18 billion, with $13.2 billion in Services revenue and $21 billion in iPhone earnings, roughly in line with the Wall Street consensus.
MacDailyNews Take: Apple will report fiscal Q3 2020 earnings for the three months ending in June on Thursday July 30th after market close (we’ll have Apple’s results for you that day right around 4:30pm EDT / 1:3pm PDT, as usual). Apple analysts’ consensus currently expect $2.03 earnings per share on revenue of $51.89 billion.
