Apple posts record Q4 revenue but margin guidance disappoints, prompting sell rating
Apple reported fiscal fourth‑quarter revenue of about $114.5 billion and diluted EPS of $2.10, beating estimates. The company guided gross margin for the holiday quarter to 45‑46%, down from 47.9% in the September quarter, and projected Services revenue growth of 8‑9% year‑over‑year. Aletheia Capital reiterated its Sell rating with a $250 price target, citing the margin outlook and rising memory‑chip costs.
Why it matters
Aletheia Capital says the $250 target implies roughly 26% downside from the current price, highlighting margin pressure as a risk to profitability. The lower margin guidance may also weigh on other analysts’ forecasts and could affect investor sentiment toward the stock.
Key facts
- 1Apple’s fiscal fourth‑quarter revenue was $114.48 billion, up 12% YoY. tipranks.com
- 2Apple’s diluted earnings per share were $2.10, up 14% YoY. tipranks.com
- 3Apple guided gross margin for the December quarter to 45%‑46%. financial-news.co.uk
- 4Apple’s gross margin in the September quarter was 47.9%. tipranks.com
- 5Apple projected Services revenue growth of 8%‑9% YoY for the holiday quarter. tipranks.com
- 6Aletheia Capital reiterated a Sell rating with a $250 price target. investing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.