Apple (AAPL) Fourth Quarter Estimate Cuts Starting in Earnest

Apple (NASDAQ: AAPL) is lower today as fourth quarter number cuts are starting to roll in, as StreetInsider.com predicted.

Today, Citi cut numbers. "We are lowering our iPhone unit sales estimates for F4Q'15 (September quarter end)," the analyst said. "We expect many of our competitors on the sell-side to also lower their September quarter in the weeks ahead before Apple reports on October 27th."

The firm is reducing iPhone unit estimates to 47mln (from 48 mln prior) below consensus at 48 mln, and shifting the units to the December quarter. The firm cut revenue estimate from $51.13B to $49.17B.

While the firm expects AAPL shares to see continued volatility in the near term, they reiterate a Buy rating and $145 target price as they believe Apple’s investment thesis will shift from a iPhone "beat and raise" investment story to a gross margin upside story while we transition to a difficult comp year for iPhone 6S unit sales (following the stellar unit growth of iPhone 6) before returning to unit growth for iPhone 7.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $110.38 yesterday.

You May Also Be Interested In

• KGI Securities Downgrades Apple (AAPL) to Hold
• Odysight.AI Inc. (ODYS) PT Lowered to $6 at Benchmark
• B.Riley Starts Suncrete Inc (RMIX) at Buy