Wedbush Lowers Apple’s Q2 Earnings Estimates

On January 31, 2025, Wedbush issued a report indicating a reduction in their earnings per share estimates for Apple Inc. (NASDAQ:AAPL). Analyst D. Ives now projects that the technology giant will achieve earnings of $1.62 per share for the second quarter of 2025, which is a decrease from the previous estimate of $1.69 per share. Despite this adjustment, Wedbush maintains an "Outperform" rating on Apple's stock, with a target price of $325.00.

The consensus estimate for Apple's full-year earnings stands at $7.33 per share. In addition to the Q2 estimate, Wedbush has provided future earnings estimates for Apple: $1.55 EPS for Q3 2025, $1.87 EPS for Q4 2025, and $7.44 EPS for the full fiscal year of 2025. Looking ahead, they also predict $2.70 EPS for Q1 2026, $1.86 EPS for Q2 2026, $2.05 EPS for Q4 2026, and $8.35 EPS for the full year of 2026.

Recent Earnings Report

Apple recently released its quarterly earnings on January 30, revealing an EPS of $2.40. This figure surpassed the consensus estimate of $2.36 by $0.04. The company's return on equity was an impressive 160.83%, with a net margin of 24.30%.

Analyst Ratings and Target Prices

Several research analysts have also published their take on Apple’s stock. On January 7, Moffett Nathanson reaffirmed a "sell" rating and reduced their price target from $202.00 to $188.00. Citigroup increased its price target for Apple from $255.00 to $275.00 while maintaining a "buy" rating. Additionally, Rosenblatt Securities reiterated a "buy" rating with a target price of $262.00 on January 27. Raymond James raised their target price to $250.00 and confirmed a "buy" rating on January 20. Moreover, JPMorgan Chase increased their target from $260.00 to $270.00, also delivering an "overweight" rating. Currently, four analysts have issued a "sell" rating, ten have given a hold rating, while twenty-one analysts suggest buying and one rates it as a strong buy. According to MarketBeat.com, Apple holds a consensus rating of "Moderate Buy" with an average price target of $242.52.

Current Stock Performance

As of Monday, Apple’s stock opened at $228.01. The company boasts a market capitalization of $3.43 trillion and a price-to-earnings (P/E) ratio of 36.19. The P/E to growth (P/E/G) ratio stands at 2.36, with a beta of 1.20. Apple has a debt-to-equity ratio of 1.26, a quick ratio of 0.88, and a current ratio of 0.92. The stock’s performance indicators include a 50-day simple moving average of $241.68 and a 200-day simple moving average of $230.86. Over the past year, Apple's stock has seen a low of $164.07 and a high of $260.10.

Dividend Announcement

Recently, Apple declared a quarterly dividend of $0.25 per share, which will be distributed on February 13. Investors on record as of February 10 will be eligible to receive this dividend. The ex-dividend date is also set for February 10, making the annualized dividend amount to $1.00 and yielding 0.44%. Currently, Apple's payout ratio is 15.87%.

Insider Activity and Institutional Holdings

On November 18, insider Chris Kondo sold 4,130 shares of Apple stock at an average price of $228.87, totaling approximately $945,233.10. Following this transaction, Kondo retains 15,419 shares valued at around $3,528,946.53, reflecting a 21.13% decrease in holdings. Another insider, COO Jeffrey E. Williams, sold 100,000 shares on December 16 for approximately $24,997,000. Following this sale, Williams holds 389,944 shares worth about $97,474,301.68, marking a 20.41% decrease in stock ownership. In terms of institutional investments, 67.73% of Apple's stock is owned by hedge funds and institutional investors, with Redmond Asset Management LLC increasing their holdings by 97.6% in the fourth quarter of 2024.

About Apple Inc.

Apple Inc. is recognized for designing, manufacturing, and marketing a wide range of consumer electronics, including smartphones, personal computers, tablets, wearables, and accessories. The company’s main products include the iPhone smartphones, Mac personal computers, iPad tablets, and various wearables like Apple Watch and AirPods.

Apple, Earnings, Wedbush