Apple (AAPL) is expected to “slightly beat” Q2 earnings and revenue estimates, driven by “better than expected product shipments and App Store outperformance,” Morgan Stanley said in a note to clients Monday.
The brokerage expects Apple to post Q2 earnings of $1.51 per share and revenue of $91 billion, compared with consensus estimates of $1.50 and $90 billion, respectively.
Morgan Stanley said investors will pay close attention to Apple’s performance in China, its updated capital return framework, and capital expenditures when the tech giant reports Q2 results after market close May 2.
The firm anticipates Apple’s Q3 revenue at around $80 billion, down from the consensus estimate of $83.4 billion. The brokerage expects Apple’s Q3 earnings per share to be $1.22.
Morgan Stanley cut its price target on Apple’s stock to $210 from $220, but reiterated its overweight rating.