Last week, Apple Inc. (NASDAQ:AAPL) disclosed its annual results, triggering an initial negative market response. The stock experienced a 3.7% dip, settling at US$223 per share. However, the reported figures, with revenues hitting US$391 billion and statutory earnings per share at US$6.08, largely aligned with market expectations. Earnings announcements are critical moments for investors to evaluate company performance, scrutinize future projections, and gauge shifts in market sentiment. Therefore, a detailed examination of the latest post-earnings forecasts is essential to understand the anticipated trajectory for Apple in the coming year.
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NASDAQ AAPL Earnings and Revenue Growth Forecast – November 2nd, 2024
According to the consensus from 32 analysts, Apple’s revenue in 2025 is projected to reach US$414.8 billion. This indicates a moderate 6.1% increase in revenue compared to the preceding 12 months. Statutory earnings per share are expected to rise by 19% to US$7.40. Interestingly, prior to the earnings release, analysts had forecasted slightly higher revenues of US$420.0 billion for 2025, while maintaining the same EPS estimate of US$7.40. This subtle adjustment suggests that analysts’ overall outlook on Apple’s business remains largely consistent, with no significant alterations in their estimates post-earnings report.
Furthermore, analysts have reaffirmed their price target of US$242 for Apple stock. This consistent price target suggests a market perception that Apple is performing steadily and meeting expectations. However, analyzing the range of analyst estimates provides a more nuanced perspective. The most optimistic analyst values Apple at US$300 per share, while the most pessimistic sets a price target of US$184. Although these figures reveal varying opinions on the stock’s potential, the overall range is not excessively broad, indicating a general consensus on Apple’s foreseeable performance within the NASDAQ market. When we compare these analyst forecasts, it becomes clear that while there are different perspectives, the market generally views Apple as a predictable entity.
To gain a broader understanding of these forecasts, it’s crucial to compare them against Apple’s historical performance and the performance of its industry peers in the tech hardware sector. Notably, Apple’s revenue growth is anticipated to decelerate, with the projected annual growth rate of 6.1% until the end of 2025 falling short of its historical 8.3% annual growth over the past five years. When we compare this to the broader tech hardware industry, which is expected to experience an average revenue growth of 7.6% annually, it becomes apparent that while Apple’s growth is slowing, the industry itself is anticipated to expand at a faster pace. This comparison highlights a nuanced outlook for Apple within the NASDAQ landscape.
Key Takeaways for NASDAQ AAPL Investors
The primary conclusion is the stability in analyst sentiment. Despite the earnings release, analysts have maintained their earnings per share estimates, indicating that Apple’s performance is in line with pre-existing expectations. Reaffirmation of revenue estimates further reinforces this view of consistent performance. However, it’s important to acknowledge that current data suggests Apple’s revenue growth is expected to underperform compared to the wider tech industry. The unchanged consensus price target implies no significant shifts in the perceived intrinsic value of Apple following the latest earnings report.
Considering a longer-term investment horizon is crucial. Simply Wall St offers comprehensive analyst estimates for Apple extending to 2027, accessible for free on their platform, providing valuable insights beyond the next year’s earnings. For investors looking to make informed decisions about NASDAQ AAPL, understanding these long-term forecasts is paramount.
Finally, risk assessment is an integral part of investment analysis. It is prudent to be aware of the 2 warning signs identified for Apple, ensuring a holistic understanding of potential investment considerations.
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This analysis by Simply Wall St is for general informational purposes only. It is based on historical data and analyst forecasts, utilizing an unbiased methodology, and should not be considered financial advice. It is not a recommendation to buy or sell any stock and does not account for individual investment objectives or financial circumstances. We focus on delivering long-term, fundamental data-driven analysis. Our analysis may not always reflect the most recent price-sensitive company announcements or qualitative factors. Simply Wall St holds no positions in the stocks mentioned.
