Wedbush Lowers Apple’s Q2 Earnings Estimates

On January 31st, 2025, Wedbush issued a report revising its Q2 earnings per share estimates for Apple Inc. (NASDAQ:AAPL). The updated forecast from analyst D. Ives now anticipates that Apple will report earnings of $1.62 per share for the second quarter, a decrease from the previous estimate of $1.69.

In this report, Wedbush maintained an "Outperform" rating for Apple, alongside a price target of $325.00 for the stock. In contrast, the consensus estimate for Apple's earnings for the entire fiscal year stands at $7.33 per share. Additionally, Wedbush provided estimates for subsequent quarters, predicting Q3 2025 earnings at $1.55 per share and Q4 2025 earnings at $1.87 per share. For the full fiscal year of 2025, the estimate is $7.44 per share. Looking ahead to FY2026, estimates are for Q1 earnings at $2.70, Q2 earnings at $1.86, Q4 earnings at $2.05, and overall FY2026 earnings at $8.35 per share.

On January 30th, Apple had previously released its quarterly earnings data, showing $2.40 earnings per share, surpassing the consensus estimate of $2.36 by $0.04. The company's return on equity was reported at an impressive 160.83%, with a net margin of 24.30%.

Several analysts have recently provided their insights regarding Apple shares. For instance, Moffett Nathanson reaffirmed a "sell" rating and lowered its price target from $202.00 to $188.00 in a report dated January 7th. Citigroup has raised its price target from $255.00 to $275.00 with a "buy" recommendation. Meanwhile, Rosenblatt Securities reiterated a "buy" rating with a price target of $262.00, and Raymond James lifted its target price to $250.00, also rating the stock as "buy." Additionally, JPMorgan Chase & Co. increased its price target from $260.00 to $270.00, designating the stock as "overweight." Currently, there are four analysts with a sell rating, ten holding, twenty-one issuing buy ratings, and one strong buy rating. The consensus rating remains a "Moderate Buy" with an average price target of $242.52.

Current Stock Performance

As of Monday, NASDAQ:AAPL opened at $228.01. The company boasts a market capitalization of $3.43 trillion. Its price-to-earnings (PE) ratio stands at 36.19, with a price/earnings growth (P/E/G) ratio of 2.36. The stock exhibits a beta of 1.20, a debt-to-equity ratio of 1.26, a quick ratio of 0.88, and a current ratio of 0.92. Apple has a 50-day simple moving average of $241.68 and a 200-day simple moving average of $230.86, with a 52-week low of $164.07 and a high of $260.10.

Dividend Information

Recently, Apple announced a quarterly dividend of $0.25, which will be distributed on February 13th, 2025, to shareholders on record as of February 10th. The ex-dividend date for this distribution is also set for February 10th. This indicates an annualized dividend of $1.00 and a yield of 0.44%. The current payout ratio for Apple is 15.87%.

Insider Transactions

In managerial news, insider Chris Kondo sold 4,130 shares of Apple stock on November 18th, 2024, at an average price of $228.87, totaling approximately $945,233.10. Following this sale, Kondo retains 15,419 shares, worth about $3,528,946.53, representing a 21.13% decrease in ownership. The details of the transaction are available through legal filings with the Securities and Exchange Commission. Meanwhile, COO Jeffrey E. Williams sold 100,000 shares on December 16th, 2024, at an average price of $249.97, amounting to around $25 million. Williams now owns 389,944 shares valued at approximately $97.47 million, reflecting a 20.41% drop in his stock holdings.

Institutional Investor Actions

Institutional investors have made notable adjustments to their positions in Apple recently. Redmond Asset Management LLC increased its holdings by 97.6% in the fourth quarter, acquiring an additional 8,811 shares valued at $4.47 million. Oxbow Advisors LLC grew its position by 2.0%, owning 114,194 shares worth $28.60 million after adding 2,241 shares. Similarly, Thompson Davis & CO. Inc. increased its stake by 5.8%, and Winebrenner Capital Management LLC made a new investment worth approximately $5.20 million. Overall, institutional investors and hedge funds collectively control 67.73% of Apple’s stock.

About Apple Inc.

Apple Inc. is known for designing, manufacturing, and marketing a wide array of consumer electronics, including smartphones, personal computers, and accessories globally. Its main products include the iPhone, Mac computers, iPad multi-purpose tablets, and wearables such as AirPods and Apple Watch.

Apple, Earnings, Estimates, Stock, Dividends