Apple Inc. (NASDAQ:AAPL)‘s next earnings call is scheduled for April 27th and according to Citigroup Inc (NYSE:C)‘s Director of Investment Research and senior market analyst, Jim Suva, Apple Inc. will repeat its last quarter’s success. Apple Inc.’s last quarter was not only Apple Inc.’s most profitable quarter; but the profitable quarter ever by any company on the planet. While on CNBC, Suva discussed why Apple Inc. investors should feel very happy about their investment choices ahead of Apple Inc.’s earnings release.
“First of all, earnings are on the 27th and as people start to do their due diligence, we think that they are actually going to look at due diligence and see that the iPhone 6 is selling great. In fact the higher configurations of the 128G and 64G are selling so much better. Big margin improvements, big ASP’s for Apple. And of course everyone is talking about the problem Apple has – too much cash on hand. […] We think on April 27, which is a very pin-pointed day, they are going to announce a 10% increase in their dividend at least, an increase in their stock buyback from $90 billion to $120 billion. Investors, we think, are going to welcome this. This will still give them plenty of cash left over for M&A and future investments for their big headquarters. […] Again, a dividend increase of at least 10% and a stock buyback going from $90 billion to $120 billion. […] Monday, the 27th after the close!” Suva said.
Suva’s claims are also asserted by Citigroup Inc (NYSE:C)’s ‘Buy’ rating on Apple Inc. (NASDAQ:AAPL)’s stock along with adding Apple Inc. onto its US Focus List; which is Citigroup Inc (NYSE:C)’s list for its highest conviction stocks. They are also maintaining a price target of $145 for Apple Inc. shares despite the recent fall in Apple Inc.’s stock.
“Stock has come back! We are taking advantage of this opportunity. You know, it was up into the mid 130’s range and now it’s fallen down into the 120’s range. We expect them to beat and we expect them to go higher. […] Foreign exchange has not been good for Apple and in fact when we adjusted our iPhone units higher we took the opportunity to lower and reduce our estimates on average selling prices due to foreign exchange to the magnitude of about a -6% FX impact year-over-year. […] These are some of the challenges that Apple has to work through,” Suva said.
With all the negativity and neutrality which is present in the mind of Apple Inc. (NASDAQ:AAPL) investors regarding the Apple Watch, this news is certainly a sign that Apple’s position for fiscal 2015 is still extremely stable.
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