CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
AAPL posted Mar-Q EPS of $1.53 vs. $1.52, beating the $1.50 EPS estimate. Revenue fell 4%, near expectations, but a decline of only 8% in China was much better than feared (Mainland China up). By product, iPhones disappointed by declining 10% as Services grew a better-than-expected 14%. We note iPads fell 17% while Macs grew 4%. Gross margin of 46.6% widened from 44.3% a year earlier, slightly above our view, reflecting the relative outperformance in Services. Separately, AAPL announced its largest ever buyback of $110B (well above our $90B assumption that was announced the last two years) and hiked its dividend 4%, which we think demonstrates AAPL’s high conviction level for business prospects ahead. We’ll provide an update after the earnings call, but we believe these results appear to change the narrative on the AAPL story, as China is holding up better than expected and there are a host of upcoming events/catalysts on the horizon that could improve investor sentiment and drive consensus estimates higher.