Apple's 'iPhone likely bottomed': Here's what Wall Street is saying about the tech giant's Q1 results.
- Wall Street analysts covering Apple were broadly positive following the company's first-quarter results.
- The company's shares gained 5% early Wednesday.
- Watch Apple trade live.
Apple's first-quarter earnings beat drove strongly positive reactions by both investors and Wall Street analyst. The company's stabilization in iPhone sales provided clarity after a rare revenue warning in January.
The company's shares spiked 5% in early Wednesday trading.
Revenues were driven by increased growth in the smaller services and wearables segments despite the slowdown in iPhone sales, which dropped 17% year-over-year to $31 billion. Quarterly revenue dropped 5% versus last year.
Even so, iPhone sales came in better than expected, and the company's guidance projected further improvements.
China iPhone sales in particular showed signs of stabilization, though Credit Suisse analyst Matt Cabral noted that long-term challenges remain in the market given increased competition and market saturation.
Apple designated a further $75 billion to buybacks and hiked its quarterly dividend by 5% to $0.77 a share. Analysts up and down Wall Street welcomed the increased capital return.
Several analysts noted 5G represents a key opportunity to recharge the company's growth. The company is preparing for the technology's rollout as it just settled its long-running patent dispute with Qualcomm.
Here's what Wall Street analysts are saying about Apple's Q1 results:
Morgan Stanley: 'Better Guide Clears the Path for Services, 5G Catalysts'
Credit Suisse: 'iPhone likely bottomed; recovery will take time'
Oppenheimer: 'iPad Delivers a Surprise Return to Growth While iPhone Remains Muted'
Wells Fargo: 'Indications Of iPhone Bottoming; Forward Estimates Relatively Unchanged'
Piper Jaffray: 'March Quarter Upside on Nearly All Metrics, June Revenue Guide Above Estimates; Overweight & $230 Price Target'
BAML: 'Trade-ins, pricing drive iPhone upside; Back to revenue growth in June Quarter; Price Objective raised to $230'
Goldman Sachs: 'Non-iPhones drive a guidance beat, Guidance implies historically low Operating Margin.'
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