Wednesday, October 26, 2016

Apple's Earnings Report: Analysts React (AAPL)

From ZeroHedge:

Wall Street Reacts To Apple's Disappointing Earnings
As reported last night, despite a kneejerk spike higher in AAPL shares, the stock ultimately faded the release of its Q4 earnings which had a mix of positive and negative components, however the market ultimately focused on the latest revenue and ASP miss and the projected margin decline and glossed over Tim Cook's exuberant revenue forecast for 2016, pushing the stock lower by nearly 3% this morning. 
So, having had a chance to digest the results, Wall Street's sellside analysts chimed in, and the prevailing sentiment was neutral to negative, with Stifel's Aaron Raker most disappointed, downgrading the stock from Buy to Hold, and lowering his price target to $115.
  • Downgrades to hold from buy, lowers PT to $115 from $130
  • Says Apple stock is likely to remain “range-bound” for next two-three quarters until investors gain greater insight into potential fundamental upside drivers
WELLS FARGO (Maynard Um)
  • Says 1Q gross margin guidance of 38%-38.5% (vs 38% in FQ4) was disappointing; notes FX had a 50bps impact
  • Management commentary aligns w/Wells Fargo view that units per carrier are higher in non-S cycles (this yr) and lower in S-cycles (next yr)
  • May create some headwinds in next year’s cycle, weigh on margins
Rates market perform

  • JPM continues to be cautious on consumer demand into early 2017
  • Expects better trends in H2’17 on increased shareholder returns and stronger replacements
  • Says co. FY1Q rev. view implies 76m iPhone units sold into channel; being driven by Samsung Note 7 problems and extra week in qtr
  • Rates overweight, raises PT to $114 from $107...

Possibly related (your Climateer early warning system):

April 24, 2016
"Decline in iPhone Shipments Could Make Apple Worst-Performing Top Five Smartphone Brand of 2016" (AAPL)
Aug. 20, 2015
Peak Smartphone: "Smartphone Sales Declined for the First Time in China" 
July 2015 
Gartner on Consumer Electronics Markets: Goodbye Growth
June 2015