Apple's Q3 Earnings: A Crucial Test for Bears and iPhone Investors

Apple's Q3 earnings will be released on July 31. The earnings will likely impact AAPL stock price. The article mentions a previous analysis of Apple by the author, which focused on Berkshire Hathaway's indirect ownership of the company.

Apple Inc. (AAPL) is set to release its fiscal 2025 Q3 earnings on July 31, after the market closes. Analysts anticipate that the company will report a profit of $1.42 per share, up 1.4% year-over-year from $1.40 reported in the year-ago quarter [1].

The consensus view on AAPL stock remains somewhat optimistic, with a "Moderate Buy" rating overall. Of the 37 analysts covering the stock, opinions include 18 "Strong Buys," three "Moderate Buys," 14 "Holds," and two "Strong Sells." The mean price target of $230.92 indicates a 9.3% upswing from the current market prices [1].

Morgan Stanley analysts expect Apple to exceed market expectations for its third-quarter financial results, despite facing changes in tariff policies. The company's revenue is projected to increase by 5.8% year-over-year, reaching $90.7 billion, buoyed by strong product sales and favorable exchange rates [2]. The firm has raised its forecasts for iPhone sales, noting both shipment volumes and average selling prices are outperforming market consensus. The sales estimates for iPads and Macs have also been adjusted upwards, with expected annual growth rates of 9% and 1%, respectively.

JPMorgan has increased its price target for Apple from $230 to $250, maintaining an Overweight rating. This adjustment reflects expectations of significant growth in cloud spending, which could enhance the company's performance in the latter half of 2025. However, the firm advises caution for other customer sectors that may be more affected by broader economic conditions [3].

Warren Buffett has doubled his stake in Domino's Pizza Inc. (DPZ) while reducing his stake in Apple. As of the end of the first quarter of 2025, Berkshire Hathaway Inc. (BRK) holds 300 million shares of Apple, down by two-thirds from its previous stake [4]. This move comes amid regulatory hurdles and tariff turmoil faced by Apple in China and India.

The earnings release is expected to provide insights into Apple's performance in the face of these challenges. Investors should closely watch the company's guidance on future earnings and any updates on its strategic initiatives, such as investments in artificial intelligence (AI) and domestic manufacturing. The stock's performance post-earnings may reflect the market's interpretation of these factors.

References:
[1] https://finance.yahoo.com/news/expect-apples-next-quarterly-earnings-100014932.html
[2] https://www.gurufocus.com/news/2991429/apple-aapl-expected-to-surpass-market-expectations-in-q3-amid-tariff-changes
[3] https://www.gurufocus.com/news/2983668/apple-aapl-price-target-raised-by-jpmorgan-to-250-aapl-stock-news
[4] https://www.benzinga.com/markets/hedge-funds/25/07/46541890/warren-buffett-doubles-his-stake-in-this-pizza-maker-over-3-quarters-as-berkshire-sells-two-thirds-of-its-apple-holdings