Apple (AAPL) Gets Earnings Forecast Cut Over Brexit
Author By Sophia VidaPosted on Apple had some bad news when Citi hardware analyst Jim Suva cut his forecast for the company’s earnings, blaming the Brexit vote as one of the reasons.
Suva wrote in a note to clients, “We are lowering our estimates for June and September quarters given potential for lower demand from macro uncertainty (Brexit related), currency volatility and lengthening replacement cycles.”
Suva estimated that the average rate of replacement has increased to 30 to 36 months, up from around 28 months more recently.
Rather than running to upgrade their iPhones, users are now waiting anywhere from two to eight extra months before getting a newer version.
According to Suva, he sees Apple reporting revenue of $41.2 billion and earnings per share of $1.35. Despite the forecast cut, he still has a Buy rating on the stock and a price target of $115.
Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.
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