Apple will report quarterly earnings today, May 2, after market close. The analyst call comes amid a 12% stock-price decline in 2024.
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Apple will report fiscal second-quarter earnings on Thursday after the closing bell.
Analysts are dialed in on Apple's iPhone business in China, which has faced a surge in competition over the past year, as well as its capital return plans and guidance as it prepares to release its next-generation iPhone later this year.
Apple's stock was down 12% year-to-date through Wednesday's close, trailing the the S&P 500's 5% gain.
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Low expectations heading into Apple's second-quarter earnings release are warranted, according to JPMorgan, but the "cyclical headwinds" could soon turn into "AI tailwinds," according to a recent note.
"The upcoming earnings print will still matter for investors in offering insights into the magnitude of the cyclical challenges on account of pressured consumer spending as well as the headwinds in relation to market share moderation in China," JPMorgan said.
The bank said investor expectations might be so low that a slight miss from Apple could spark a turnaround in the stock price as the results turn out better than feared.
JPMorgan said that based on the latest demand trends, it expects Apple to report a modest revenue miss in the quarter, as well as a "more significant" miss to revenues when it reports third-quarter revenue guidance.
JPMorgan rates Apple at "Overweight" with a $210 price target.
