Morgan Stanley: Look for Apple to report better-than-expected June quarter results

Citing App Store growth estimates for June that suggest strong Services over-performance, Morgan Stanley has increased confidence that Apple will report a significant June quarter earnings beat.

Morgan Stanley: Look for Apple to report better-than-expected June quarter results
Apple Park in Cupertino, California

Mike Peterson for AppleInsider:

In a note to investors seen by AppleInsider, lead analyst Katy Huberty estimates that the App Store will grow 18% between June 1 and June 22, suggesting nearly five points of outperformance compared to her earlier forecast…

“When we dig into the underlying data from June-to-date, we come away incrementally bullish on the prospects for accelerating App Store growth in the rest of the year,” Huberty writes.

The App Store growth is accelerating in eight of the 10 largest markets from May. There also appears to be a material acceleration in many markets that were hit by the coronavirus pandemic earlier, including China, Taiwan, Japan, and South Korea.

Huberty suggests that this could hint at growth acceleration in Western markets further into 2021.

MacDailyNews Take: Apple’s FY 21 third quarter results are due at the end of July (exact date TBA) and, currently, analysts’ consensus calls for EPS of $0.99 (vs. $0.64 YOY) on revenue of $72.78 billion (vs. $59.69 billion YOY, Apple’s Q3 record). Even with these weird “COVID-compare” expectations, Morgan Stanley is likely on solid ground expecting Apple to report better-than-expected June quarter results.


  1. Ok….almost end of the Quarter….I’ll get the ball rolling for everybody…….

    ……obscure analcist says his sources told him nobody is buying iPhone 5g models in china, india, usa…….because everyone wants the 6g model…..
    and and …apple can’t innnnnnovate anymore because they can’t a provide teleporter function in the iPhone 13…….

    Apple will knock the cover off the ball……$

    Now back to the doooooooom…..Colin Gillis??? Michael Blair…..where are you guys….

    Ok your turn….

  2. AAPL continues to grow their core constituencies. Betting the franchise on their house-designed chips was brilliant. Partnering with ARM, TSMC has proven prescient.

  3. I have no doubt Apple will have fine earnings results, but I don’t think that will help the stock very much. I think that Apple is throwing away too much money on buybacks and sacrificing revenue growth. I honestly think that investors are more concerned with a company’s growth more than just share buybacks. There are plenty of companies that are flourishing and not spending huge amounts on buying back shares. Look at Nvidia. That stock just keeps climbing and climbing and they’re doing it during a chip shortage. Nvidia is also managing to give a pretty decent dividend. I’ll bet Nvidia’s value will take off when they acquire ARM Holdings and Nvidia already has a P/E of 90 or so. Facebook is flying as well. Zuckerberg is able to squeeze money out of a stone. None of Apple’s privacy strategy is slowing down Facebook revenue gains as there are so many ways to steal personal data.

    I’m not griping about Apple as I’m doing well with it. I just can’t quite understand throwing away tens of billions of dollars on stock buybacks every year and not making any major acquisitions. It would just seem Apple could really get into a lot of other businesses they could improve upon. Especially in the fields of health and education.

    I don’t think Apple stock will tank on earnings, it just won’t go up very much until all the buyback cash is exhausted at the end of the year.

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