Apple Stock Analysis Shows Mixed Earnings Projections

Apple stock has been trending negatively, returning -11.1%. The analysis reveals mixed signals for earnings estimates, with current quarter EPS at $1.61. Investors should consider both earnings revisions and revenue growth before making decisions.

Date: 25-03-2025

AI Rating: 6

Earnings Per Share (EPS)
For the current quarter, Apple is expected to post earnings of $1.61 per share, reflecting a year-over-year change of +5.2%. However, over the past 30 days, the Zacks Consensus Estimate has decreased by -0.5%. The earnings estimates for the current fiscal year stand at $7.26, indicating a year-over-year increase of +7.6%, with a slight downward revision of -0.2% over the last 30 days. In the next fiscal year, the EPS estimate is set at $8.16, a year-over-year change of +12.4%, also reflecting a decrease of -1.1% in estimates recently. These changes may create volatility in stock prices as investors assess the potential impact on future performance.

Revenue Growth
The revenue growth outlook for Apple seems to be positive, with a consensus sales estimate for the current quarter at $93.67 billion, representing a +3.2% increase year-over-year. For the current and next fiscal years, the revenue estimates are $406.43 billion and $437.85 billion, respectively, which indicates growth rates of +3.9% and +7.7%. Such growth in sales is typically viewed favorably by investors as it may lead to enhanced earnings capacity over time.

General Observations
While there are positive indicators regarding revenue, the recent downward revisions in earnings estimates could deter investor confidence. The Zacks Rank assigned to Apple is #3, suggesting that the stock may perform in line with the broader market, which could attract cautious investors. Given the mixed signals, careful monitoring of any further earnings revisions and market conditions will be essential for investors considering Apple stock.

Stocks: AAPL