Apple (AAPL) stock has more exciting things than a 4-for-1 stock split, Bank of America Merrill Lynch tech analyst Vamsi Mohan.
To be precise, 10 exciting things in the eyes of Mohan who provided a streamlined list on Friday after Apple’s third-quarter earnings release for the fiscal year.
“(1) Despite the closure of COVID-19 related stores and staying on house orders during the fiscal third quarter, product revenue growth confirms our confidence in established base stickiness, (2) iPhone demand price from incentive gains. Elasticity persists, (3) new iPhone delays causing weakness in September, but reversed by December quarter, (4) management expects strong non-iPhone product performance to continue in fiscal fourth quarter, (5) iPad And the Mac installed base attracts new users and advances development expectations (6). Services grew slower than expected but there is an upward bias in margins, (7) Apple saw new all-time revenue records in the App Store, Apple Music, Video and Cloud Services. (8) strong capital return (returned $ 21 billion to shareholders in the calendar, $ 15.9 billion in the first quarter, with $ 3.7 billion in dividends), (9) Apple announced a 4-for-1 stock split, ( 10) The balance sheet remains solid. Mohan writes, “$ 81 billion in net cash and strong free cash flow generation.”
The analyst reiterated its Buy rating on Apple’s stock and raised its price target from $ 410 to $ 420.
Apple’s stock rose 7% to record levels Friday, pushing the tech giant closer to the first $ 2 trillion dollar market cap company. Mohan is not alone in his post-earnings optimism on Apple – most analysts forecast the revised price target and full-year earnings on Friday.
“For me, it was a massive setback quarter,” WebSch tech analyst Dan Ives told Yahoo Finance’s first trade.
Apple outpaced fiscal third quarter earnings estimates in the third quarter, despite the global recession brought on by the COVID-19 epidemic. Total sales of $ 59.7 billion smashed forecast for $ 52.3 billion. Apple saw growth across all of its product segments and geographies. Apple CEO Tim Cook credited the iPhone as the main driver for the big top and bottom lines.
“It was substantially better because we reported in the prepared comments that May and June were much better,” Cook told analysts about the iPhone’s performance in the quarter.
@BrianSozziAnd onLinkedin.“data-reactid =” 40 “>Brian Sozzi Is an editor-at-large and co-anchor First trade In Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi And on Linkedin.