Apple CEO Tim Cook. Apple's latest installment of quarterly earnings is on January 30 after market close, and there are five key points that Apple needs to make to satisfy investors. Morgan Stanley has proven to be one of the more accurate and reasonable firms that cover Apple. In a new note released on Friday by the firm, analyst Erik Woodring notes that the earnings setup feels very similar to a year ago. Like a year ago, he is expecting a street beat, but a lower than expected second quarter revenue predictions.
Specifically, the firm remains bullish on its overweight rating and maintained $273 price target. Woodring expects revenue of $124.0 billion, and $2.31 earnings per share. This all implies a 3.7% revenue growth — which is roughly in line with what Wall Street expects as a whole.
The note does cite some uncertainty about short-term iPhone sales. It points to the iPhone SE 4 launch in March, iOS 18.4 in April, and an uncertain timing for a partnership for AI in China as catalysts for the next quarter. In the note, though, Woodring details what he wants to see, and what should matter the most to investors on Thursday, January 30 in the longer-term.
The rollout of Apple Intelligence has been contentious. Apple heavily promoted the feature in the September debut of the iPhone 16 lineup, and is still trickling out features — and will be for some time to come. So, the question of how much Apple Intelligence influences iPhone sales is an open one, with an enormous number of variables. Apple will likely make some kind of commentary about Apple Intelligence, but will shy away from specifics on demand impact, like it always does.
