Apple heads into fiscal third-quarter earnings with Bank of America expecting a modest beat, even as weaker product margins and a staggered iPhone launch create some near-term pressure. BofA reiterated its Buy rating and $380 price target, with analyst Wamsi Mohan forecasting revenue of $109 billion and EPS of $1.89, slightly above Wall Street estimates of $108 billion and $1.87. He expects revenue to rise 16% from a year earlier. BofA sees Services revenue growing 14%, with gross margins around 76.5%, while product gross margin is expected to fall to 36.8% in June and 34.1% in September before recovering to 38.5% in December as higher-priced iPhones launch and tariff costs potentially ease by $3 billion.
Apple Inc.BofA expects a modest earnings beat but highlights weaker product margins and staggered iPhone launch as near-term pressure.
Bank of America Corp