Analyst: Apple could crush Q221 earnings estimates

Apple’s stock price have rallied about 12% over the past two weeks, as investors turn their attention to the company’s upcoming Q221 earnings results. There are reasons to think more gains could follow as one analyst thinks Apple could crush Q221 earnings estimates.

Apple Park in Cupertino, California
Apple Park in Cupertino, California

Eric J. Savitz for Barron’s:

Evercore ISI analyst Amit Daryanani this morning repeated his Outperform rating and $175 target price on Apple shares, while adding the stock to the firm’s Tactical Outperform list. The analyst thinks Apple is “well-positioned to report upside to March quarter estimates,” driven by strong performance by both iPhone and services, and despite ongoing component shortages.

“While the supply chain issues are real, we expect Apple will be relatively protected by its status as one of the largest electronics purchasers in the world,” Daryanani writes in a research note… Meanwhile, he notes that iPhone shipments in China were up 185% in the first two months of the quarter, while the App Store saw 32% growth in the quarter.

In short, Daryanani thinks Apple is positioned to report “sizable upside” versus expectations for the March quarter, with June guidance likely to be in line with expectations or better.

MacDailyNews Take: We’ll see if Apple will return to providing quarterly guidance for Q321, which the company rightly suspended due to the response to COVID-19. As for Apple posting a “sizable upside” over earnings estimates bring it on!


  1. It’s going to be interesting to see if Apple gets any respect from Wall Street due to Apple jump-starting an ARM-based home desktop/laptop trend throughout the computer industry. Or will it end up with the analysts still saying “Apple doesn’t innovate anymore?” It’s really disappointing how Apple doesn’t get recognition for changing certain things in the computer industry. If x86 processors start to lose market share, that will be directly due to Apple Silicon. Honestly, if that isn’t considered innovation, then I don’t know what is. I really expect big investors to ignore the advantages of Apple Silicon and Apple’s share price will simply lag as though Apple did nothing worthwhile.

    I don’t know what computer industry pundits consider innovation but Apple Silicon has to be up there with Apple catching the mobile industry flatfooted with the 64-bit A7 processor. Even so, there were people saying that was a useless specification to have in a mobile processor. It’s as though people randomly pick and choose as to what is innovative or not.

    It’s just weird how anything Tesla does is groundbreaking, but what Apple does is considered nothing special, at all. Maybe I’m just missing some key understanding of what’s good and what isn’t.

    1. I guess stuff like 64 bit and the M1 aren’t “innovative” to some people because the product looks and runs the same with or without it. Sure it is faster, but stuff is faster every year – to the point that it is expected. Not reasonable, but that is what is going on.

      There are certainly things at Apple that NEED innovation. The finder is a neglected mess. Keyboard/mouse hasn’t really changed since 1984. (Except maybe the click wheel, but Apple didn’t invent that.).

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