last week Apple Inc.You may have seen (NASDAQ:AAPL) announce its annual results to the market. Initial reaction was not positive, with the stock falling 3.7% to $223 last week. Sales of $391 billion and statutory earnings per share of $6.08 were roughly in line with expectations. Earnings is an important time for investors because they can track a company’s performance, look at analysts’ forecasts for next year, and see if there has been a change in sentiment toward the company. So we gathered the forecasts after the latest earnings release to see what we can expect for next year.
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NASDAQGS:AAPL Earnings and Sales Growth November 2, 2024
Considering the latest performance, the consensus forecast from Apple’s 32 analysts is for the company to post sales of $414.8 billion in 2025. This represents a slight improvement in sales of 6.1% over the past 12 months. Statutory earnings per share are expected to rise 19% to $7.40. However, prior to this earnings release, analysts had expected sales of $420 billion and earnings per share (EPS) of $7.40 in 2025. Consensus analysts don’t appear to have found anything in the earnings results that would change their view on the business, as there were no significant changes to their estimates.
Analysts reaffirmed their price target of $242, showing that the business is performing well in line with expectations. However, this is not the only conclusion we can draw from this data, as some investors also consider spreads in estimates when evaluating analysts’ price targets. Currently, the most optimistic analyst values Apple at $300 per share, while the most pessimistic values it at $184. While there are certainly different opinions on stock prices, the range of estimates is not wide enough to call it unpredictable in our view.
One way to get more context on these forecasts is to compare them to past performance and look at the performance of other companies in the same industry. We would like to emphasize that Apple’s revenue growth is expected to slow, as the projected 6.1% CAGR through the end of 2025 is significantly lower than the 8.3% CAGR over the past five years. Comparing this to other companies in the industry (including analyst forecasts), they are collectively expected to grow their revenue at 7.6% per year. So while revenue growth is expected to slow, it’s clear that the broader industry is expected to grow faster than Apple.
conclusion
Most importantly, there was no major change in investor sentiment, with analysts reaffirming that the company’s performance was in line with its previous earnings per share estimates. Fortunately, analysts also reaffirmed their sales estimates and stated that the company’s performance is in line with expectations. However, data shows that Apple’s profits are expected to lag the overall industry. There was no material change to the consensus price target, suggesting that the intrinsic value of the business has not changed significantly from the latest estimates.
From this perspective, we believe the long-term business outlook is much more important than next year’s performance. Simply Wall St has all the analyst estimates for Apple out to 2027, and you can see them for free on our platform here.
But you should always think about the risks. For example, we want you to know Two warning signs about Apple Found it.
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using unbiased methodologies and are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take into account your objectives, or your financial situation. We aim to provide long-term analysis based on fundamental data. Our analysis may not take into account the latest price-sensitive company announcements or qualitative data. Simply Wall St has no position in any of the stocks mentioned.