Wedbush: Apple (AAPL) Earnings a 'Gold Medal' Performance
Apple blew past its fiscal third-quarter results in what Wedbush's Dan Ives calls a "drop the mic" quarter, though AAPL stock hardly budged.


Apple (AAPL, $146.77) was meant to be one of the highlights of a jam-packed earnings calendar this week. And despite what Wednesday's sluggish response in AAPL stock might suggest, Tuesday evening's report didn't disappoint.
In fact, Apple delivered what Wedbush analyst Dan Ives called a “gold medal” performance. The highlights:
- Revenue of $81.4 billion (+36% year-over-year) topped expectations for $77 billion.
- Profits of $1.30 per share (+100%) were well ahead of a $1.05 per share estimate.
- Gross margins of 43.3% topped Wall Street’s 41.7% estimate.
- iPhone sales reached $39.6 billion to top estimates by roughly $5.5 billion.
- Services revenue of $17.5 billion easily topped expectations for $16.3 billion.
“We essentially view this quarter as the second half and the start of the back stretch of the 5G supercycle and a ‘drop the mic’ quarter for Apple,” says Ives. The analyst rates the stock at Outperform (equivalent of Buy) and has a $185.00 price target on the stock, implying 26% upside over the next 12 months. “The outlook was healthy and clearly cautioned with chip shortage comments, a prudent and smart approach heading into its next iPhone launch in September.”

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We believe this quarter is a great next step in driving this stock to a $3 trillion market cap over the next year as the Street further digests the numbers and pent-up demand story in Cupertino.”
AAPL stock was slightly lower in response, however, continuing a decent but hardly sterling year for shares. The stock is up 10% year-to-date, underperforming both the tech sector's 18% performance in 2021, as well as the S&P 500's 17% advance.
Ives highlights Asia’s role in the earnings beat, with China revenue up 58% year-over-year. The country will remain a key ingredient to Apple’s success going forward, he adds, estimating that it will be responsible for roughly 20% of iPhone upgrades over the next year, including when the iPhone 13 launches.
“Taking a step back, we believe based on our recent Asia supply chain checks that iPhone 13 demand will be similar/slightly stronger than iPhone 12 out of the gates which speaks to our thesis that this elongated "supercycle" will continue for Cupertino well into 2022,” he says.
Wall Street largely remains bullish on AAPL stock following the report. Among analysts surveyed by S&P Global Market Intelligence, 24 analysts call it a Strong Buy, another eight call it a Buy and seven say it's a Hold. Meanwhile, just one pro calls Apple a Sell, and two others deem it a Strong Sell.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
By Karee Venema
-
2026 Disney Dining Plan Returns: Free Dining for Kids & Resort Benefits
Plan your 2026 Walt Disney World vacation now. Learn about the returning Disney Dining Plan, how kids aged three to nine eat free, and the exclusive benefits of staying at a Disney Resort hotel.
By Carla Ayers
-
Stock Market Today: Dow Drops 971 Points as Powell Pressure Ramps Up
President Trump is increasing his attacks against Jerome Powell, insisting the Fed chair cut interest rates.
By Karee Venema
-
Wall Street Is Worried About Apple Stock. Should You Be, Too?
Analysts expect Trump's sweeping tariffs to have an outsized impact on Apple stock. How concerned should investors be?
By Karee Venema
-
The Stock Market Is Selling Off. Here's What Investors Should Do
Investors started fleeing the equities market en masse in response to the Trump administration's "jaw-dropping" tariffs. But the experts say don't panic.
By Karee Venema
-
Should You Sell Tesla Stock as Elon Unrest Grows?
Tesla's CEO is wearing many hats and is managing them "with great difficulty."
By David Dittman
-
5 of Warren Buffett's Best Investments
Warren Buffett has had plenty of wins throughout his decades of investing. Here, we highlight five of Buffett's best investments.
By Kyle Woodley
-
Apple's 100,000% Return Is a Result of Innovation, Brand Loyalty and Buybacks
Apple spends billions buying back its own shares, but this is just one catalyst behind the incredible growth in its share price.
By Louis Navellier
-
Stock Market Today: Stocks Struggle After Trump's EU Tariff Threats
Stocks pared early gains after Trump threatened the European Union with 25% tariffs.
By Karee Venema
-
Stock Market Today: Dow Gains After Nike Gets Upgraded
Jefferies thinks Nike's new CEO will spark a turnaround in the beaten-down blue chip.
By Karee Venema