Which analysts were right — or wrong — about Apple's holiday quarter earnings?

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

December quarter fiscal performance

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content.

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

Apple reported blockbuster Q1 2022 earnings results that shattered records and expectations. Here’s what analysts predicted before earnings — and what they thought about the actual performance.

On Thursday, Apple reported its December quarter fiscal performance, which broke records across its hardware and services portfolio.

Global Tech News Daily

In total, Apple reported revenue of $123.9 billion, earnings-per-share of $2.10, and company-level gross margins of 43.8%.

Before the earnings report Thursday, Wall Street’s consensus was that Apple would rake in $118.3 billion in revenue. Wall Street also predicted gross margins of 40.5% and earnings-per-share of $1.89.

Global Tech News Daily

Apple set records across its product category. The company’s iPhone, Mac, Services, and Wearables, Home, and Accessories all set revenue records. The company also said it now has more than 1.8 billion active devices and a total of 785 million paid subscriptions.

Here’s what analysts predicted prior to earnings, and what they thought after the fact.

Katy Huberty, Morgan Stanley

Morgan Stanley’s Katy Huberty got close to Apple’s actual numbers with a forecast that the company would report revenue of $122.3 billion, gross margins of 41.9%, and EPS of $1.97.

In a note to investors after earnings, Huberty called Q1 2022 “one of the cleanest quarters in recent memory.” She said the strong iPhone demand, combined with solid Services and Mac growth, reiterated the value of Apple’s ecosystem and its growing user base.

The analyst also upped her 12-month Apple price target to $210 from $200 after the earnings results.

Krish Sankar, Cowen

Krish Sankar, an analyst at Cowen, was off by about $4 billion. He predicted that Apple would report revenue of $119 billion, gross margins of 41.5%, and earnings-per-share of $1.90.

The analyst said the December quarter results were solid, and iPhone shipments were better than expected because of ongoing supply constraints. With Apple providing the March quarter color it did, Sankar believes that the company can grow mid-single digits year-over-year going forward.

Sankar raised his 12-month Apple price target to $200 from $180.

Daniel Ives, Wedbush

Wedbush analyst Daniel Ives did not provide an updated forecast ahead of Apple’s Q1 2022 earnings. However, he did say that he expected the company to beat Wall Street’s consensus of $118.3 billion and earnings-per-share of $1.88.

After the fact, Ives likened Apple’s fiscal performance in the December quarter to a “Rocky Balboa-like” feat. That’s because of Wall Street fears about the ongoing supply chain issues and concerns about Apple’s growth stagnating. Ives says that Apple’s growth story is “plowing straight ahead,” particularly with potential supply chain improvements on the horizon.

Ives maintains his Outperform rating for Apple and 12-month price target of $200.

Rod Hall, Goldman Sachs

Goldman Sachs analyst Rod Hall, generally an Apple bear, was off on his estimates. He estimated Apple Q1 2022 revenues of $118.6 billion, gross margins of 42%, and earnings-per-share of $1.91.

Heading into the Q1 2022 earnings call, Hall acknowledged that Apple likely executed “better than plan” against supply constraints. He was right in that regard since Apple’s iPhone revenue hit an all-time high in the December quarter despite chip shortages.

The analyst maintains his 12-month Apple price target of $142.

Samik Chatterjee, JP Morgan

Samik Chatterjee of JP Morgan expected Apple to report total revenues of $118.7 billion and earnings-per-share of $1.94. His estimates were about $5 billion off the mark regarding revenue.

He accurately predicted that the company would post revenues above Wall Street consensus. Additionally, in a note post-earnings, Chatterjee said that Apple broke the jinx surrounding its share price decreasing after earnings results. That’s likely because of the more robust March quarter growth guidance.

The analyst maintains his 12-month Apple price target of $210.

Harsh Kumar, Piper Sandler

Piper Sandler analyst Harsh Kumar estimated that Apple’s revenue would clock in at $115.8 billion in the holiday quarter. It isn’t clear if that number was properly updated since it was well below consensus.

Going forward, Kumar is raising his estimates as far as future Apple growth. He said the company’s installed base, potential hardware growth, and rumored new features in the auto industry and healthcare could drive the company’s growth to new heights in the future.

The analyst maintains his 12-month Apple price target of $200.

News Related

OTHER NEWS

Apple TV+ announces 'Slow Horses' spy drama to stream in April

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Apple ... Read more »

Apple, Broadcom win new damages trial in $1.1B Caltech patent case

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. A ... Read more »

Creative TiKTok user converts an iBook G3 into iPad case

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. By ... Read more »

Michigan toddler dials 911 on Apple Watch

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. A ... Read more »

Best deals Feb. 4: $70 off Powerbeats Pro, $220 27-inch 2K monitor, $40 400GB microSD card, more!

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Friday’s ... Read more »

iMac Pro, AirPods Pro 2, and hands-on with Universal Control on the AppleInsider podcast

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. On ... Read more »

MacBook Pro, Pro Display XDR will automatically dim when hot

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Apple ... Read more »

Second class action suit targets Powerbeats Pro battery life, charging issues

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. A ... Read more »

Amazon Prime raising annual subscription to $139

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. The ... Read more »

Apple cuts commission by 3% for Dutch apps using third-party payments

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Following ... Read more »

Victrola Revolution Go review: a portable record player perfect for budding music enthusiasts

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Take ... Read more »

UK woman orders iPhone 13 Pro Max, gets a $1 bottle of hand soap instead

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. A ... Read more »

Microsoft tracking increasingly sophisticated Mac trojan that delivers adware

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Microsoft’s ... Read more »

Apple releases trailer for 'Lincoln's Dilemma,' coming to Apple TV+ on Feb. 18

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Apple ... Read more »

Glenn Close joins the cast for season 2 of 'Tehran' on Apple TV+, premiering May 6

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Apple ... Read more »

Lowest price ever: Apple 24-inch iMac dips to $1,149 for a limited time only

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. The ... Read more »

AirTags with disabled anti-stalking speakers briefly surface on eBay, Etsy

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Apple ... Read more »

Apple's December quarter was its best yet for iPhone sales in India

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Apple’s ... Read more »

iPad delivery estimates remained extended as Apple prioritizes iPhone 13

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. New ... Read more »

Senate Judiciary advances bill that would force Apple to allow iOS side-loading

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. The ... Read more »

Putting Face ID unlock with masks to the test in iOS 15.4 & how to set it up

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. In ... Read more »

Best deals Feb. 3: AirPods Pro w/ MagSafe $180, $550 off 55-inch LG OLED, 30% off an Eero router, more!

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Thursday’s ... Read more »

Apple TV+ picks up four Bafta film nominations

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. The ... Read more »

Judge dismisses proposed iPhone water resistance class action suit

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. A ... Read more »

Second Israeli firm developed & sold exploit to break into iPhones remotely

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. A ... Read more »

Apple opens 'reimagined' new Abu Dhabi retail store

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Apple ... Read more »

South Korea says Apple's alternative payment plan 'lacks detail'

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. South ... Read more »

Battle of the super yachts: Jeff Bezos' Y721 versus Steve Jobs' 'Venus'

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. The ... Read more »

Apple urges lawmakers to reject bill that would force it to allow side-loading

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Apple ... Read more »

Facebook rebuilding ad platform due to App Tracking Transparency, data laws

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Meta ... Read more »

Apple's board recommends voting against all shareholder proposals

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Unsurprisingly, ... Read more »

How AppleInsider staff continue to work from home, two years later

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. All ... Read more »

Apple Watch Series 7 has a fast charging problem

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. One ... Read more »

Apple TV+ has a TikTok and its first challenge promotes 'The Afterparty'

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Apple ... Read more »

Compared: Jabra Elite 4 Active vs AirPods vs AirPods Pro

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Jabra’s ... Read more »

Connecticut man caught placing an AirTag for stalking

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. A ... Read more »

Amazon launches Apple Watch sale, offering lowest prices in 30 days

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Just ... Read more »

Best deals Feb. 2: $100 off every AirPods Max color, $400 off Vizio 65-inch 4K 120Hz AirPlay TV, more!

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. In ... Read more »

Qualcomm gets another chance to validate patents in Apple lawsuit

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. iPhone ... Read more »

Apple TV+ announces 'Dear Edward' drama from creator of 'Friday Night Lights'

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. “Friday ... Read more »