Apple's Earnings Estimates and Stock Performance Analysis

Apple's earnings estimates and stock performance have been under scrutiny. Despite a recent -0.1% change, analysts expect a +5.2% year-over-year earnings increase for Q1, suggesting a mixed outlook for investors.

Date: 12-03-2025

AI Rating: 6

Earnings Per Share (EPS)
Apple's expected earnings of $1.61 per share for the current quarter indicate a year-over-year change of +5.2%. However, a slight -0.5% change in earnings estimates over the last month may raise some concerns regarding short-term growth.

Revenue Growth
The revenue estimates show some promise, with a projected +3.2% year-over-year growth for the current quarter, expected sales of $93.67 billion for the quarter, and overall revenue growth of +4% and +8.4% for the current and next fiscal years respectively. This reflects a reasonable growth trajectory but also indicates that the company will face significant pressure to maintain this momentum.

Net Income and Profit Margins
The report does not explicitly mention net income or profit margins, which are also key indicators for assessing stock performance and overall financial health.

Return on Equity (ROE)
The analysis does not provide any details on Return on Equity, an essential metric for gauging how well a company uses investments to generate growth.

In the broader evaluation, Apple's Zacks Rank of #3 (Hold) suggests that investors could expect the stock to perform in line with market trends, indicating a tempered outlook ahead. Despite contrasting performance with broader indices, the slight revisions in various estimates imply that while growth is achievable, the company's current valuation leads to some caution among investors.

Stocks: AAPL