$Apple(AAPL)$ known for its production of iPhones, iPads, and various other gadgets, this company boasts a solid track record of exceeding earnings estimates, especially in the last two reports, with an average surprise of 5.46%.
In the latest quarter, Apple was anticipated to reveal earnings of $1.39 per share, but it pleasantly surprised with $1.46 per share, marking a 5.04% positive variance. The preceding quarter's consensus estimate was $1.19 per share, yet Apple delivered $1.26 per share, resulting in a surprising 5.88% beat.
Estimates for Apple have been on an upward trajectory, partly fueled by its history of surpassing earnings expectations. Coupled with a favorable Zacks Earnings ESP (Expected Surprise Prediction) and a robust Zacks Rank, Apple seems poised for another earnings beat.
Our research indicates that stocks holding a positive Earnings ESP alongside a Zacks Rank #3 (Hold) or better tend to yield positive surprises nearly 70% of the time. Essentially, with a portfolio of 10 such stocks, the potential for seven beating consensus estimates is significant.
The Zacks Earnings ESP contrasts the Most Accurate Estimate with the Zacks Consensus Estimate for the quarter, with the former being a revised version of the latter. The rationale is that analysts adjusting their estimates right before earnings release have the latest information, potentially more accurate than the earlier consensus predictions.
At present, Apple boasts an Earnings ESP of +3.65%, indicating a bullish sentiment among analysts regarding its short-term earnings potential. Combining this positive Earnings ESP with the stock's Zacks Rank #3 (Hold) suggests another beat may be on the horizon. The next earnings report for the company is slated for release on February 1, 2024.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
