Apple results set to impress amid record high US stock market

Research Strategist

Oct 29, 2019

Valued at 19.2x forward earnings, how much higher can Apple stock track this earnings season?

Apple (AAPL) reports Q419 earnings in Wednesday’s after-hours market. With US stocks at all-time highs, Apple sits valued at a lofty 19.2x forward earnings. The tech giant beat expectations in 8/8 prior quarters, averaging a 4.7% share price gain the day after reporting. The implied move for this forecast session is 4.1%.

"Apple Inc daily chart"

Analysts are expecting revenue of $62,96b, against $62.9b last year. Q4 iPhone shipments are eyed at 45m and demand for wearables holds strong.

Looking further ahead, guidance into Q1 2020 is strong: $86.43b revenue and $4.41 earnings per share (EPS). Services results (including the new Apple TV+, launching 1 November 2019) are expected to impress.

With a solid track record, low short interest, and impressive Q1 2020 expectations, how much higher can Apple track? Considering record-high US stock pricing, it might take a considerable beat to move the needle on earnings estimates this time. But as we’ve seen time and time again, if any company can do this, it’s Apple.

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