Apple's Q4 Results: Analyst Predicts Strong iPhone Demand Surge
- Analyst Michael Ng from Goldman Sachs projects Apple will exceed Q4 earnings expectations with an EPS of $1.61.
- Continued strong demand for iPhone 16 and older models contributes to this positive outlook.
- Overall, Ng's bullish stance is supported by Apple's resilience in service growth despite slowing product revenue.
Ahead of its fourth-quarter earnings report scheduled for October 31, 2024, a Goldman Sachs analyst has expressed optimism about Apple Inc's financial results. Analyst Michael Ng has upgraded his outlook, projecting earnings-per-share (EPS) of $1.61, which exceeds the general consensus estimate of $1.57. His forecasts include expectations for the company to generate revenues of approximately $94.5 billion, also above the consensus of $93.6 billion. Ng emphasizes the strong sales performance of both the new iPhone 16 and older iPhone models. Despite initial concerns related to shorter lead times and recent production cuts, demand for the latest models remains robust. The analyst has noted that iPhone 16 demand has proven stable on a year-over-year basis, contradicting more cautious previous assessments. In addition to hardware sales, the analyst highlights Apple's strengths in its services segment as a critical factor underpinning his positive outlook. Although overall product revenue growth has encountered some headwinds, particularly in the lengthening replacement cycle and diminished demand in the PC and tablet markets, Ng believes the resilience of the Apple ecosystem will prevail. Overall, Ng's arguments underscore a broad confidence in Apple's future performance, attributing it to steady user engagement within its ecosystem, ongoing service sector growth, and the potential for innovation in product features supporting upgrades among customers.