$Apple(AAPL)$ Wall Street is noticing a surprising setup for Apple stock ahead of earnings. In a fresh call, Bank of America points out that the market isn’t pricing in enough for AAPL right now. The bank sees strength in iPhone sales, healthy Services growth, and a helpful forex backdrop, all of which should power earnings significantly going forward.
But a key reason this call matters is that BofA thinks Apple will announce another big buyback and a dividend hike, giving investors even more reason to be positive.
The bank expects Apple to post about $113 billion in revenue and $2 per share in earnings for its fiscal second quarter. That’s above current Wall Street expectations of roughly $109 billion in revenue and $1.93 in earnings per share.
That gap is important.
When a company as closely watched as Apple heads into earnings with expectations that may be too low, even a modest upside surprise can change the whole dynamic for AAPL stock.
The bank believes that two of Apple’s most important businesses, the iPhone and Services, could be the source of the upside here.
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