Apple (NASDAQ:AAPL) investors should mark their calendars for April 28; in two days, the tech giant will report earnings for the second quarter of 2022. Of course, it hasn’t been an easy month for Apple, which has spent April watching shares decline. Today, AAPL stock is down as the earnings report looms in the distance. However, investors have reason to believe shares will rebound. After all, the company has still “held up fairly well” when compared to peers.
For Q1 2022, Apple reported revenue growth of 11% year-over-year (YOY). While the tech behemoth hasn’t been immune to supply-chain constraints, the company has indeed been holding up. Some experts foresee disappointing numbers in Thursday’s report, but Wall Street remains overall bullish. Most analysts on TipRanks still call the stock a “strong buy.” Plus, of the analysts surveyed, none have issued a “sell” rating for AAPL stock.
Let’s take a closer look at what investors should be watching for the upcoming report.
Apple Earnings Report: What AAPL Stock Investors Should Be Watching
- For the upcoming quarter, analysts have issued an average earnings estimate of $1.43, with a high estimate of $1.56 per share. The average revenue estimate is also $94 billion. Finally, the growth estimate for the period is 2.1%.
- Analyst Samik Chatterjee of JPMorgan remains bullish on AAPL stock. However, Chatterjee did lower his price target from $210 to $205. The analyst believes investors may be disappointed by iPhone sales for the period.
- That said, InvestorPlace’s David Moadel sees Wall Street’s low expectations as an opportunity for Apple to beat estimates, thereby driving up shares. As Moadel sees it, “an earnings beat on Thursday should remind people that Apple is a robust and resilient business.”
- Other analysts have issued similar sentiments. For instance, Baird analyst William Power recently touted Apple’s long-term growth potential and impressive cash flow. Power maintained a bullish price target of $190 and believes investors should regard any dip in shares as an opportunity.
- For the period, Apple is likely to report growth in its wearable and services segment, a rapidly expanding area of tech. According to early 2022 predictions, the global wearable tech market is expected to grow to $118.2 billion by 2028 at a compound annual growth rate (CAGR) of 13.8%.
- Apple has not provided any formal revenue guidance. However, AppleInsider says the company expects a “record-setting” Q2, despite the inevitable decline in sales following Apple’s holiday bump.
- The company’s recent foray into Asian markets will also likely be a growth catalyst to watch. Apple recently announced plans to build the iPhone 13 in India. This will help it secure a share of the world’s second-largest smartphone market.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.