US Nasdaq earnings and price forecasts: Apple Q4 2022 results preview

[MongiIG]

Apple Q4 2022 and full-year results to show mid- to high single digit revenue and earnings growth.

Source: Bloomberg

 

Shares Apple Inc. Revenue Price Inflation

 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Thursday 20 October 2022 

When are the Apple results?

Apple Inc. (NASDAQ: AAPL) the world’s largest company by market capitalization, is set to report fourth quarter results on Thursday, the 27^th of October 2022

What ‘the Street’ expects from Apple Q4 2022 results?

Apple results continue to find a strong base of comparison with a year (2021) where the business thrived in a pandemic-stricken environment. Expectations are for mid to high single digit growth for the group’s full year revenue and earnings figures. The slowing rate of growth will likely be attributable to foreign exchange repatriation, a higher anticipated tax rate and an increase in operating expenses through the current high inflation environment in which we operate.

A consensus of estimates from Refinitiv data for the upcoming Q4 and full year 2022 Apple results arrive at the following:

• Revenue for the quarter of $88.9bn (+6.65% year on year)

• Full year revenue of $392.74bn (+7.36% year on year)

• Earnings per share (EPS) for the quarter of $1.27 (+2.25% year on year)

• Full year EPS of $6.10 (+8.81%)

How to trade Apple results

In terms of an institutional view as of the 20^th of October 2022, a Refinitiv poll of 44 analysts have an average rating of ‘buy’ for Apple, with a long-term price target (mean) of $183.59. This suggests that the current price (as of 20th October 2022) trades at a 28% discount to what is deemed a longer-term fair value for the share.

Source: Refinitiv

In terms of a retail trading view, as of the 20^th of October 2022, IG Client Sentiment data shows 83% of IG clients with open positions expect the price to rise in the short term, while 17% expect the price to fall in the near term.

Source: IG

Apple share price – technical view

Source: IG Charts

The share price of Apple continues to trade in a broad rangebound environment. The price has recently reversed from oversold territory and off the 137.70 support level, which suggests resistance at 151.85 to be the initial upside target from the move. Traders who are long might consider using a close below the 137.70 support level as a stop loss indication for the trade.

Summary:

• Q4 2022 results are scheduled for the 27th of October 2022

• Revenue for the quarter of $88.9bn (+6.65% year on year)

• Full year revenue of $392.74bn (+7.36% year on year)

• Earnings per share (EPS) for the quarter of $1.27 (+2.25% year on year)

• Full year EPS of $6.10 (+8.81%)

• The average long term broker rating consensus for Apple is ‘buy’

• 85% of IG clients with open positions on Apple expect the price to rise in the near term

• The share price of Apple remains in a broad range trading environment