IT Home July 2 news, according to Apple Insider reports, JPMorgan Chase said that despite supply chain issues and macroeconomic conditions, Apple June quarter performance may exceed Wall Street expectations.
In a note to investors, JPMorgan analyst Samik Chatterjee wrote that he is "not as concerned as Wall Street is" about Apple's upcoming earnings report on July 28. While there may be medium-term risks, he expects Apple revenue and earnings per share to be resilient.
Relative to Apple's conservative guidance on its last earnings call, Samik Chatterjee believes that Apple's latest situation will be better than expected.
Better supply chain dynamics will "overwhelm" modest demand weakness and Apple's warning of losses of $4 billion to $8 billion in the June quarter, the analyst said. Analyst expectations are now in line with sell-side consensus but better than buy-side expectations.
Wall Street predicts Apple will report operating income of $82 billion in the June quarter, which is broadly in line with Chatterjee's forecast of $82.1 billion. However, buy-side estimates put Apple's quarterly revenue at around $78 billion.
Chatterjee said product segments other than Mac may not be affected by supply chain headwinds. In addition, according to his estimate, Apple's lost revenue in the new quarter will be less than $4 billion.
On the other hand, after nearly a quarter, Chatterjee has moderately lowered his revenue and profit forecasts for Apple. He noted that Mac and iPad growth could slow as consumer spending weakens.
Chatterjee added that Apple's pricing power and its ability to buy back stock will likely erase this correction. Overall, Chatterjee believes Apple stock is well-positioned to outperform.
"Apple's 2022 fiscal year Q3 financial report will be announced on July 28: Revenue includes new products such as iPhone SE 3, Mac Studio, M2 MacBook Pro 13 inches"
