Erste Group Bank Brokers Reduce Earnings Estimates for Apple

Key Points

• Erste Group Bank lowered Apple’s FY2027 EPS estimate to $9.54 from $9.57, though the revised forecast remains above the broader consensus estimate of $8.76.
• Apple’s latest quarterly results exceeded expectations, with EPS of $2.02 versus $1.89 expected and revenue of $109.42 billion, up 16.4% year over year.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $328.60, despite concerns about Apple’s high valuation and rising component costs.

Apple Inc. (NASDAQ:AAPL - Free Report) - Equities researchers at Erste Group Bank cut their FY2027 EPS estimates for shares of Apple in a research note issued to investors on Wednesday, August 5th. Erste Group Bank analyst H. Engel now forecasts that the iPhone maker will earn $9.54 per share for the year, down from their previous forecast of $9.57. The consensus estimate for Apple's current full-year earnings is $8.76 per share.

Apple (NASDAQ:AAPL - Get Free Report) last announced its earnings results on Thursday, July 30th. The iPhone maker reported $2.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.89 by $0.13. The company had revenue of $109.42 billion during the quarter, compared to analyst estimates of $109.04 billion. Apple had a net margin of 27.62% and a return on equity of 135.46%. The firm's quarterly revenue was up 16.4% compared to the same quarter last year. During the same period in the previous year, the business posted $1.57 earnings per share.

A number of other research firms have also weighed in on AAPL. DA Davidson reiterated a "neutral" rating and issued a $270.00 price target on shares of Apple in a research report on Friday, July 31st. TD Cowen raised their price objective on shares of Apple from $350.00 to $400.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Robert W. Baird lifted their target price on shares of Apple from $310.00 to $330.00 and gave the company an "outperform" rating in a research note on Friday, July 24th. JPMorgan Chase & Co. dropped their target price on shares of Apple from $345.00 to $340.00 and set an "overweight" rating for the company in a report on Friday, July 31st. Finally, Weiss Ratings upgraded Apple from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $328.60.

Apple Price Performance

NASDAQ AAPL opened at $308.26 on Tuesday. Apple has a 12 month low of $223.78 and a 12 month high of $344.57. The stock has a market cap of $4.50 trillion, a price-to-earnings ratio of 35.35, a PEG ratio of 2.68 and a beta of 1.09. The company's 50 day moving average is $309.49 and its two-hundred day moving average is $283.86. The company has a current ratio of 1.00, a quick ratio of 0.93 and a debt-to-equity ratio of 0.66.

Hedge Funds Weigh In On Apple

Institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in shares of Apple in the 4th quarter worth $52,266,468,000. Nuveen LLC purchased a new stake in shares of Apple during the 1st quarter valued at about $17,472,482,000. Deutsche Bank AG bought a new position in shares of Apple in the 2nd quarter valued at about $13,658,359,000. Cardano Risk Management B.V. lifted its holdings in shares of Apple by 890.7% in the 4th quarter. Cardano Risk Management B.V. now owns 41,984,810 shares of the iPhone maker's stock valued at $11,413,990,000 after acquiring an additional 37,746,784 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Apple in the second quarter worth about $10,588,946,000. Hedge funds and other institutional investors own 67.73% of the company's stock.

Insider Buying and Selling at Apple

In other news, insider Ben Borders sold 116 shares of the firm's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $295.14, for a total transaction of $34,236.24. Following the completion of the transaction, the insider owned 38,713 shares in the company, valued at $11,425,754.82. This trade represents a 0.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.06% of the stock is currently owned by insiders.

Apple Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 13th. Shareholders of record on Monday, August 10th will be issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Monday, August 10th. Apple's dividend payout ratio is 12.39%.

Key Stories Impacting Apple

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Apple is testing memory chips from China’s CXMT for iPhones and MacBooks sold in China, potentially giving it an additional supply source during a global DRAM shortage and helping mitigate component costs. However, U.S. export restrictions and CXMT’s capacity and technology limitations could constrain the opportunity. Apple tests China's CXMT memory chips for iPhones and MacBooks
• Positive Sentiment: Crake Asset Management reportedly increased its Apple position by approximately 890,000 shares, signaling continued institutional confidence, although the transaction is not expected to materially change Apple’s fundamentals. Crake Asset Management boosts Apple stake
• Neutral Sentiment: Apple’s next quarterly dividend of $0.27 per share is scheduled for August 13, providing a modest near-term shareholder return but little effect on the stock’s broader outlook. Apple to pay dividends this week
• Negative Sentiment: Jefferies downgraded AAPL to Underperform from Hold and reduced its price target to $263.66 from $285.56. The firm cited supply-chain checks suggesting Apple may have abandoned a planned premium all-glass iPhone, weakening a potential catalyst for substantially higher average selling prices. Apple downgraded by Jefferies over canceled all-glass iPhone
• Negative Sentiment: Investors are concerned that iPhone 18 production costs could rise by roughly 38% because of soaring memory prices. Apple may need to raise prices—risking demand—or absorb the costs through lower margins. Reports also suggest Apple’s negotiating leverage over memory suppliers has diminished. iPhone 18 costs could jump 38 percent
• Negative Sentiment: The combination of a potentially canceled breakthrough iPhone design, higher component expenses, and uncertainty over incoming CEO John Ternus’s product strategy has led analysts to question Apple’s near-term growth and pricing power. These concerns are particularly important because Apple’s valuation leaves limited room for execution disappointments. Apple downgraded at Jefferies over iPhone yields and growth concerns

Apple Company Profile

Apple Inc NASDAQ: AAPL is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple's principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.

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