iPhone maker Apple (NASDAQ:AAPL) is set to release its first quarter Fiscal 2023 results on Thursday, February 2, after the market closes. The Street expects Apple to post diluted earnings of $1.94 per share, meaningfully lower than the year-ago quarter figure of $2.10 per share. Similarly, total revenue is pegged at $121.74 billion, representing a 1.8% decline compared to revenues of $123.94 billion reported in Q1FY22.
The lockdown-related production disruptions at Apple’s supplier, Foxconn (Zhengzhou plant), in China, would have likely impacted Apple’s iPhone sales. Also, tighter consumer pockets and a tough macro backdrop would have hampered the tech giant’s overall revenues.
Analyst’s View on Apple’s December Quarter
Analyst Brian White of Monness Crispi believes Apple is poised for a tough December quarter as a result of the Zhengzhou unrest, regulatory headwinds, and a gloomier economic outlook. Having said that, the five-star analyst maintains a Buy rating on AAPL with a price target of $174 (20.6% upside).
Importantly, White expects Apple’s iPhone revenue to decline 5% year-over-year to $67.93 billion and Mac revenue to fall 9% year-over-year to $9.86 billion in the to-be-reported quarter. On the contrary, White expects iPad sales to jump 19% year-over-year to $8.62 billion and Wearables, Home & Accessories sales to grow 12% year-over-year to $16.46 billion.
For Q2FY23, White expects Apple to post revenue of $96.72 billion (falling 1% year-over-year) and diluted earnings of $1.46 per share (lower than $1.52 per share in Q2FY22).
Is Apple a Buy, Sell, or Hold?
Ahead of its results, a few analysts have slashed earnings estimates for the iPhone maker. Despite that, Apple commands a Strong Buy rating consensus based on 23 Buys and four Hold ratings. Moreover, the average Apple price target of $172.41 implies 19.5% upside potential from current levels. Meanwhile, AAPL stock has gained 15.4% so far in 2023 while losing 16.9% over the past year.
