Apple Stock Takes a Hit after Wall Street Firm Adjusts Estimates for March Quarter

On Tuesday, Apple’s stock experienced a decline after a Wall Street firm adjusted its estimates for the company’s March quarter. This adjustment was due to sales-channel checks that demonstrated lower iPhone sales and a decline in China. Despite the decrease in iPhone sales as evidenced by the channel checks, there was a slight increase in revenue from iPad and Mac computer sales.

Needham analyst Laura Martin decreased her estimates for Apple’s fiscal second quarter but retained her buy rating on Apple stock, noting the significant obstacles the company faces. Martin mentioned that Apple’s growth outlook is anemic or even negative and that cost increases to fund generative artificial intelligence stand as the primary obstacles preventing new investors from buying AAPL. Analysts polled by FactSet are expecting earnings of $1.51 per share on sales of $90.7 billion for fiscal Q2, while Martin predicts iPhone sales of $46.6 billion, a 9% decrease year over year, and services sales of $23.3 billion, an 11% increase. For hardware sales, Martin estimates $67.6 billion, a 9% decrease year over year, and for services sales she predicts $23.3 billion, an 11% increase.

Martin also revised her revenue and earnings targets for this fiscal year and the next on the stock market on Tuesday. On Tuesday, Apple stock dropped 1.9% to close at 169.38 while Needham analyst Laura Martin’s price target for Apple stock is 220