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

On Tuesday, Apple stock experienced a decline after a Wall Street firm adjusted its estimates for the company’s March quarter. This adjustment resulted from sales-channel checks that demonstrated lower iPhone sales and a decline in China. Needham analyst Laura Martin, though she decreased her estimates for Apple’s fiscal second quarter, 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, based on her conversations with clients. 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.

For the March quarter, Martin estimates that Apple will report hardware sales of $67.6 billion, a 9% decrease year over year, and services sales of $23.3 billion, an 11% increase. She predicts iPhone sales of $46.6 billion, a 9% decrease year over year. Martin’s model for Apple shows earnings per share of $1.51, a 1% decrease, on total sales of $90.8 billion, a 4% decrease, for fiscal Q2. Analysts polled by FactSet are expecting earnings of $1.51 per share on sales of $90.7 billion. Apple will announce its fiscal Q2 results on May 2.

Martin also revised her Apple revenue and earnings targets for this fiscal year and the next