Apple Q1 Earnings Beat Expectations Amid iPhone Sales Decline

Apple Inc. has reported Q1 earnings of $2.40 per share, exceeding Wall Street expectations, but shares fell due to weaker iPhone sales and a muted revenue outlook. Investors should be cautious amidst these mixed signals for the stock.

Date: 01-03-2025

AI Rating: 6

Key Financial Indicators: The report indicates that Apple posted Q1 2025 earnings of $2.40 per share, which beats Wall Street expectations, suggesting a solid earnings performance. Additionally, the company achieved a record revenue of $124.3 billion during the same period, showcasing its strong market presence despite challenges.

However, the analysis highlights that sales of the iPhone have been weaker-than-expected, particularly during the holiday quarter, which could be a concern for investors. The delayed launch of the iPhone SE model is another factor contributing to the cautious sentiment among investors regarding Apple's 2025 revenue outlook.

While the company continues to perform well in terms of earnings, the decline in iPhone sales could negatively impact investor sentiment and stock performance in the short term. Analysts remain moderately optimistic, with a consensus rating of “Moderate Buy” from 37 analysts, suggesting that some believe in the long-term potential of Apple's product offerings.

Apple's stock has traded above its 50-day and 200-day moving averages since the previous year, which typically indicates a bullish trend. However, the stock's decline from its 52-week high and relative underperformance compared to peers like Sony Group Corporation (SONY) prompts a need for investors to stay alert. Furthermore, the significant year-over-year increase of 29.9% over the past 52 weeks does demonstrate resilience and potential for recovery.

Stocks: AAPL SONY