Apple's (AAPL) next earnings report on May 1, 2025, is expected to show a positive earnings surprise of 1.69% based on the latest estimates. Here's a detailed analysis of what surprises could be in store:
- Expected Earnings and Revenue: Analysts are forecasting an EPS of $1.61, which represents a 5.23% increase from the corresponding quarter of the prior year1. The estimated revenue for the quarter is $93.91 billion, indicating a 3.22% year-over-year growth1.
- Historical Performance: Apple has a track record of beating EPS estimates 10 out of the last 12 quarters and revenue estimates 9 out of the last 12 quarters2. This suggests a high likelihood of another earnings beat.
- Recent Trends: The consensus EPS estimate has been revised 0.17% downward, which could indicate that analysts are slightly reducing their expectations1. However, this does not necessarily preclude a positive surprise.
- Historical Surprise Trends: In the past four quarters, Apple has delivered earnings surprises ranging from 1.32% to 10.07%3. The average of these surprises could provide a benchmark for what might be expected in the upcoming report.
- Market Sentiment: Despite a recent decline in stock price, investor sentiment remains positive, with a focus on key metrics such as iPhone sales, Services revenue growth, and margin expansion3. This optimism could translate into a positive earnings surprise.
In conclusion, while there is some downward pressure on estimates, the overall outlook for Apple's next earnings report remains positive. A surprise is likely, and the company may exceed expectations in key financial metrics.
3/27/2025 08:08am
