Erste Group Bank Issues Positive Forecast for Apple Earnings

Key Points

• Erste Group Bank raised its FY2027 EPS forecast for Apple to $9.55 from $9.54, well above the broader consensus estimate of $8.74 per share.
• Apple’s latest quarterly results exceeded expectations, with EPS of $2.02 versus the $1.89 consensus and revenue of $109.42 billion; revenue increased 16.4% year over year.
• Analyst sentiment remains favorable but mixed, with Apple carrying a “Moderate Buy” consensus rating and an average price target of $334.91.

Apple Inc. (NASDAQ:AAPL - Free Report) - Investment analysts at Erste Group Bank lifted their FY2027 EPS estimates for Apple in a research report issued to clients and investors on Tuesday, September 8th. Erste Group Bank analyst H. Engel now anticipates that the iPhone maker will post earnings per share of $9.55 for the year, up from their prior forecast of $9.54. The consensus estimate for Apple's current full-year earnings is $8.74 per share.

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

AAPL has been the topic of a number of other research reports. Maxim Group reissued a "buy" rating and issued a $350.00 target price (up from $310.00) on shares of Apple in a research note on Tuesday, June 9th. KeyCorp reaffirmed an "underweight" rating on shares of Apple in a research note on Friday, September 4th. UBS Group reiterated a "neutral" rating on shares of Apple in a report on Thursday. DA Davidson reiterated a "neutral" rating and set a $270.00 price objective on shares of Apple in a research report on Wednesday, September 2nd. Finally, Moffett Nathanson reissued a "neutral" rating and set a $304.00 price objective on shares of Apple in a report on Tuesday, September 8th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, twelve have given a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, Apple has an average rating of "Moderate Buy" and a consensus target price of $334.91.

Apple Stock Performance

Apple stock opened at $332.27 on Monday. Apple has a fifty-two week low of $229.02 and a fifty-two week high of $344.57. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.93 and a current ratio of 1.00. The stock has a market cap of $4.85 trillion, a P/E ratio of 38.10, a price-to-earnings-growth ratio of 2.89 and a beta of 1.08. The firm's fifty day moving average price is $318.20 and its 200-day moving average price is $292.63.

Institutional Trading of Apple

Several hedge funds and other institutional investors have recently bought and sold shares of AAPL. Bullseye Investment Management LLC purchased a new position in shares of Apple in the second quarter valued at about $284,000. Talon Private Wealth LLC lifted its holdings in Apple by 11.5% in the 2nd quarter. Talon Private Wealth LLC now owns 24,561 shares of the iPhone maker's stock worth $7,107,000 after buying an additional 2,543 shares during the period. Marathon Wealth Advisors LLC lifted its holdings in Apple by 0.3% in the 2nd quarter. Marathon Wealth Advisors LLC now owns 39,328 shares of the iPhone maker's stock worth $11,380,000 after buying an additional 115 shares during the period. Miramontes Capital LLC lifted its holdings in Apple by 0.9% in the 2nd quarter. Miramontes Capital LLC now owns 93,662 shares of the iPhone maker's stock worth $27,102,000 after buying an additional 805 shares during the period. Finally, Core Capital Management & Research inc. bought a new stake in shares of Apple in the 2nd quarter worth approximately $614,000. Institutional investors own 67.73% of the company's stock.

Insider Activity

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 transaction, the insider directly owned 38,713 shares of the company's stock, valued at approximately $11,425,754.82. This trade represents a 0.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Jennifer Newstead sold 1,438 shares of Apple stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $317.23, for a total value of $456,176.74. Following the completion of the transaction, the senior vice president owned 34,352 shares in the company, valued at approximately $10,897,484.96. This represents a 4.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 7,310 shares of company stock valued at $2,279,378. Company insiders own 0.06% of the company's stock.

Apple Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Monday, August 10th were given a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 0.3%. The ex-dividend date was Monday, August 10th. Apple's dividend payout ratio is presently 12.39%.

More Apple News

Here are the key news stories impacting Apple this week:

• Positive Sentiment: iPhone Duo creates a potential new growth cycle. Apple’s $1,999 foldable iPhone, scheduled to arrive October 23, could drive upgrades, deepen ecosystem engagement and add a high-margin premium product category. Some analysts believe foldables could eventually account for 10% to 20% of iPhone revenue. How Wall Street viewed Apple's foldable iPhone
• Positive Sentiment: Analysts see renewed hardware momentum. Alongside the Duo, Apple unveiled the iPhone 18 Pro lineup, new Apple Watch models, AirPods 5 and expanded Siri AI features. TD Cowen maintained a Buy rating with a $400 target, supporting the bullish reaction. TD Cowen reiterates Buy rating
• Positive Sentiment: Carrier promotions could reduce sticker-price resistance. T-Mobile, AT&T and Verizon are offering installment and trade-in incentives for the expensive Duo, potentially broadening access without an immediate industrywide price war. Wireless carrier promotions
• Neutral Sentiment: Wall Street remains divided. Bank of America retained a Buy rating but lowered its price target to $370, while Rosenblatt kept a Neutral rating and $303 target. The debate centers on Duo demand, supply constraints, valuation and the durability of the upgrade cycle.
• Negative Sentiment: Margin pressure remains the main risk. Apple raised iPhone Pro prices by $100, but memory and other component costs are rising rapidly. Management has already guided to lower gross margins, raising concerns that pricing may not fully offset higher costs. Apple margin pressure from memory costs
• Negative Sentiment: Premium valuation and competition limit upside. Apple trades near the upper end of its historical earnings multiple, while Huawei, Xiaomi and Samsung remain strong competitors in China and the foldable market.
• Negative Sentiment: Insider selling is a modest cautionary signal. SVP Jennifer Newstead sold approximately $456,000 of stock, reducing her direct holdings by about 4%, although she retains a substantial position.

Apple Company Profile

Apple Inc is a technology company that designs, develops and markets consumer electronics, software and digital services. Its principal products include the iPhone, Mac computers, iPad tablets, Apple Watch, AirPods and other accessories. The company also develops operating systems and applications that support its hardware products.

Apple's services business includes the App Store, Apple Music, Apple TV, Apple Arcade, Apple Fitness+, Apple News+, Apple Pay and iCloud. These services provide digital content, payments, cloud storage and subscription offerings across the company's ecosystem of devices.

Founded in 1976, Apple is headquartered in Cupertino, California, and serves consumers, businesses, educational institutions and government customers worldwide.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.