‘Don’t Expect Much on Earnings,’ Says Morgan Stanley About Apple Stock

Apple (NASDAQ:AAPL) is gearing up to report its fiscal second-quarter results (March quarter) this Thursday (May 1) after the bell, and Wall Street is watching closely. As the market’s most valuable company, Apple always commands attention – but this time, it’s not about how the quarter went.

Morgan Stanley analyst Erik Woodring anticipates Apple will slightly top expectations for both the March results and the June guidance, though gross margins next quarter may take a slight hit from tariff-related pressures. “However,” Woodring adds, “this is already well expected.”

What will really shape post-earnings sentiment is how Apple addresses broader uncertainties – or as Woodring puts it, “everything else.” These include its strategy for managing short- and long-term tariff-related supply chain risks and their impact on costs and margins; whether current demand is sustainable or simply being pulled forward; the timeline for an updated Siri and any changes to Apple’s AI strategy following recent personnel shifts; the approval status of Apple Intelligence in China and the effects of “nationalistic behavior”; potential future price hikes to offset tariffs; and the company’s current relationship with Presidents Trump and Xi.

That said, Woodring is skeptical Apple will delve into these issues.

“We believe it’s unlikely many of these key debates are addressed at earnings, and therefore don’t see the print as a key catalyst for the stock,” he explained. “However, we expect some clarity to emerge on tariffs, China, AI, iPhone growth, and/or regulatory in the coming 12 months.”

Despite the near-term uncertainty, Woodring remains bullish. He calls Apple the “most-underowned megacap in the world,” reiterates his Overweight (i.e., Buy) rating, and bumps his price target from $220 to $245. The new figure makes room for one-year returns of 16%. (To watch Woodring’s track record, click here)

18 other analysts join Woodring in the AAPL bull camp and with the addition of 12 Holds and 3 Sells, the consensus view is that the stock is a Moderate Buy. At $236.93, the average price target implies shares will gain 12% in the months ahead. (See AAPL stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.