Apple likely to beat Street estimates on continued strong sales of iPhone: BofA

Investing.com -- Bank of America expects Apple to deliver an earnings beat for its March quarter, driven by robust iPhone demand and continued strength in its high-margin Services business.

Analyst Wamsi Mohan said BofA models “revenues above guidance for the March quarter,” adding it sees “upside to Street estimates given continued strong sales of iPhone, double-digit growth in Services revs and benefit from FX.”

The bank forecasts revenue of $113 billion and earnings per share of $2.00, ahead of consensus estimates of $109 billion and $1.93.

iPhone demand remains a key driver. BofA is raising unit estimates to 60 million, citing “strong demand for iPhone 17.” It added that Services revenue growth should remain resilient, modeling 14% year-on-year growth, in line with recent trends, despite softer App Store sales.

Looking ahead, BofA expects Apple to guide for continued growth, forecasting June-quarter revenue growth of 10–15% year-over-year. However, it noted some margin pressure from higher component costs, with product gross margin expected to compress sequentially.

The bank also highlighted several upcoming catalysts, including a potential $100 billion buyback authorization, a dividend increase, the June Worldwide Developers Conference, and future product launches such as a foldable iPhone and an “enhanced Siri with integration with Gemini AI.”

BofA reiterated its Buy rating and raised its price target for Apple to $325 from $300.

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