Bullish analysts have been boosting their estimates ahead of Apple’s results but Sterne Agee in an earnings outlook said it is “confident in Apple’s ability to exceed heightened expectations.”
They added the company may surprise to the upside on its guidance. “For its outlook, Apple usually offers vintage conservative guidance, however, based on our supply chain checks indicating better availability of components and increased production capacity, we believe it could be less conservative than usual,” Sterne Agee said.
Jefferies analysts in their preview said they expect Apple to report results above consensus for both revenue and earnings per share. “We believe sales for MacBook Air, iPad and iPhone were better than expected despite fears of production constraints and slowing demand,” they wrote. “We also believe Apple will provide strong guidance [for the third quarter]due to new products and back-to-school demand.”
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