'Getting its groove back': Wall Street expects strong Q4 earnings for Apple as iPhone demand overrides China worries

Core Viewpoint - Apple is set to report its fourth-quarter earnings, with expectations of strong revenue and earnings per share driven by new iPhone demand and services growth [1][2]. Financial Performance Expectations - Analysts anticipate Apple will generate $102 billion in revenue for the fourth quarter, with earnings per share projected at $0.95 [1]. - Goldman Sachs estimates iPhone product revenue will increase by 10% year-over-year to $50.8 billion, surpassing the consensus estimate of $49.8 billion [9]. - Services revenue is expected to grow by 13% year-over-year, fueled by subscription services like iCloud+ and AppleCare+ [10]. Analyst Insights - Bank of America has a positive long-term outlook for Apple, highlighting potential revenue growth from artificial intelligence and strong demand for new iPhones, estimating total iPhone unit sales at 57 million for the current quarter [3][4]. - JPMorgan expects Apple earnings to perform modestly better through the end of the year, driven by strong demand for the iPhone 17 [11]. - Melius Research believes Apple is "getting its groove back," with anticipated improvements in sales in China and profit margins due to new iPhone demand [13][14]. Price Targets and Ratings - Bank of America raised its price target for Apple from $270 to $320, indicating a 7% upside from current levels [4]. - Goldman Sachs reiterated a "Buy" rating with a price target of $279, suggesting a 3% upside [10]. - CFRA Research issued a "Buy" rating with a price target of $280, implying a 4% upside [16].