Key points:
- Apple reported Q3 results after the close Thursday
- Its shares ate up premarket
- Analysts have cut price targets, but remain bullish
Apple (NASDAQ: AAPL) reported fourth-quarter earnings after the bell on Thursday, which beat Wall Street expectations.
The company posted a September quarter record revenue of $90.1 billion, an 8% increase year over year. In addition, the group posted quarterly earnings per share of $1.29, above expectations of $1.17. However, the tech giant reported iPhone revenue of $42.63 billion, below forecasts of $43.21 billion.
Apple shares are trading up 0.5% premarket.
Also Read: How to Buy Apple Shares
The firm also declared a cash dividend of $0.23 per share, payable on November 10.
Following its Q4 results, several Wall Street analysts cut their price targets for Apple.
Baird analyst, William Power, lowered its price target to $170 from $185 but kept an Outperform rating. The analyst was encouraged by the strong demand trends despite the macro environment, but lowered his full-year revenue estimate to reflect the increasing FX impact.
Citi analyst Jim Suva trimmed the firm's price target on Apple to $175 from $185, maintaining a Buy rating on the stock. Suva told investors in a note that he believes shoppers will adjust spending allocations and continue to purchase Apple's growing platform of products and services.
KeyBanc's Brandon Nispel reduced the firm's price target on Apple shares to $177 from $185, maintaining an Overweight rating. Nispel stated Apple's hardware revenue topped expectations, driven by better Mac and Wearables, while iPhone was in line and iPad was below consensus.
Elsewhere, JPMorgan analyst Samik Chatterjee labelled Apple's performance in the quarter as resilient, with iPhone revenue still constrained by supply and services challenged by currency and macro headwinds. Chatterjee said Apple's “resilience to a tough macro through the mix of Products and Services is likely to drive a re-rating.” Chatterjee tells investors in a research note. Chatterjee maintained an Overweight rating on Apple with a $200 price target.