Financial Trading Blog
Stock of the day 22/07/2016 – Apple Inc
It’s already been tumultuous year for Apple; from a starting price of $103 the stock managed to rise to a 4 month high of $112 by the middle of April, before plunging all the way to a near 3 year low of $89.48 by the middle of May. Since then the stock has fluctuated between $92 and $100, most recently rising thanks to the success of Nintendo’s Pokemon Go app. Apple sits at a current trading price of $99.07 (IT-Finance.com, 22/07/2016).
Back in January Apple announced first quarter earnings per share of $3.28 off of a 1.7% rise in revenue to $75.9 billion, both numbers better than analysts’ estimates. However, the sale of 74.8 million iPhones was a smidge lower than the 75.46 million forecast, tempering any relief over the company’s headline figures.
If that Q1 report showed the company beginning to falter than April confirmed its struggles, Apple missing both EPS and revenue estimates at $1.90 and $50.56 billion respectively. That latter figure marked a 13% drop from Q2 2016’s revenue, Apple’s first year-on-year quarterly sales decline since 2003, thanks to a 16% fall in iPhone sales to (an admittedly better than forecast) 51.19 million. This news put the stock on track to hit that aforementioned 3 year nadir by the middle of May, and dealt a serious knock to investors’ confidence in the previously impervious company.
In terms of its Q3 figures on Tuesday with the iPhone sales slowdown unlikely to have stalled analysts are expecting Apple to post earnings per share of $1.38, down from $1.85 the year before, alongside a 15% decline in revenue to $42.01 billion, smack bang in the middle of the company’s $41 billion to $43 billion guidance back in Q2.
Apple Inc has a consensus rating of ‘Buy’ with an average target price of $126.76.
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