The Driver of Apple's Exploding Valuation Is Under Threat. See What's at Stake.
One reason for the continued run in the shares has been the various services Apple sells to people living their digital lives in its ecosystem.
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38 minutes ago
- Yahoo
Apple: Growth Despite Tariff Headwinds
Key Points Apple posted double-digit revenue and earnings growth, topping Wall Street's quarterly expectations. iPhone revenue continues to climb, and the company returned to growth in China. Expect Apple to continue to face questions about tariffs and AI, but its core franchises remain strong. 10 stocks we like better than Apple › Here's our initial take on Apple's (NASDAQ: AAPL) fiscal 2025 third-quarter financial report. Key Metrics Metric Q3 FY24 Q3 FY25 Change vs. Expectations Revenue $85.8 billion $94.0 billion 10% Beat Earnings per share $1.40 $1.57 12% Beat iPhone revenue $39.3 billion $44.6 billion 13% Beat Services revenue $24.2 billion $27.4 billion 13% Beat Apple Posts Strong Growth Despite Macro Headwinds Investors came into earnings season with questions about Apple's ability to weather the impact of tariffs, and the company answered by reporting robust growth. Apple said revenue grew by 10% and earnings per share by 12%, boosted by stronger-than-expected iPhone growth in the quarter. The sales growth, in a quarter marred by tariff talk, is a reminder of the enduring popularity of the iPhone and the success of a new, more affordable model released earlier this year. Apple has responded to the tariff concerns by shifting shipping patterns, with a majority of iPhones sold in the U.S. now reportedly assembled in India and not China. Apple had forecast low- to mid-single-digit growth in the quarter, predicting a $900 million headwind from tariffs in the period. Apple also returned to growth in China, posting sales of $15.4 billion for the quarter compared to $14.7 billion in the same three months of 2024. The company did not provide a Q4 forecast in the earnings report, but is likely to give some guidance about what it expects in the second half of calendar year 2025 during its call with investors. Immediate Market Reaction Investors were happy with the results. Apple stock was up 2% in aftermarket trading immediately following the release but ahead of the company's call with investors. What to Watch Apple's numbers were strong, but that was expected. The big question with Apple is not about the numbers, but about what comes next. Apple's AI efforts have floundered so far, and top execs have fled to rivals. There have been reports that Apple could find a partner to bring AI to its devices instead of continuing to develop in-house. Expect a lot of investor questions about AI on the call, as well as a focus on future devices that Apple can add to its offering along with phones, computers, iPads, and wearables. There is also still a looming uncertainty about tariffs, with tariff exemptions on smartphones expected to lapse and talk of new India tariffs that could further complicate supply chains. Apple is yet to answer the question about the "next big thing," be it AI or a new device, but the company's core franchises remain massively profitable and show no signs of sputtering from here. Helpful Resources Full earnings report Investor relations page Additional coverage Should you invest $1,000 in Apple right now? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,098,838!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy. Apple: Growth Despite Tariff Headwinds was originally published by The Motley Fool
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41 minutes ago
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Why Lucid Group Stock Sank This Week
Key Points Lucid stock fell as the company announced a 10-for-1 reverse stock split. Broader market headwinds, including fresh tariffs and weaker-than-expected job data, added to the pressure on Lucid shares. With ongoing losses and a steep climb to profitability, Lucid faces mounting operational and financial challenges. 10 stocks we like better than Lucid Group › Shares of Lucid Group (NASDAQ: LCID) are trading lower this week, down 17.1% as of 3:37 p.m. ET on Friday. The drop comes as the S&P 500 lost 2.4%, and the Nasdaq-100 lost 2.2%. Lucid has announced plans to initiate a reverse stock split, a move often reserved for companies in danger of delisting from the Nasdaq or NYSE. Its stock is also taking a hit from today's larger macro news. Lucid wants to boost its stock price Though it still needs to be approved by shareholders, Lucid announced earlier this week that it intends to initiate a 10-for-1 reverse stock split. While this won't directly affect the underlying value of investors' positions, it carries negative connotations. A reverse stock split is most often used to keep a share price above the $1 minimum that the New York Stock Exchange and Nasdaq require. Lucid says that there is no danger of the stock falling under $1 and that this is in an attempt to make the stock more attractive to institutions, which sometimes have minimum prices for stocks they will buy. Tariffs and weak job data spook markets President Trump set new rates for his "reciprocal" tariffs on dozens of countries with a fresh executive order. This comes as the latest job data shows a slowdown in hiring, indicating the economic picture might be less rosy than hoped. The U.S. added just 73,000 jobs in July, well below the expected 100,000. Lucid has a long way to go Lucid is at a critical juncture. It must grow sales and reduce costs significantly to show it can reach profitability, which it is still far from doing. I think too many hurdles lie in its way, and I would avoid Lucid stock. Should you invest $1,000 in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Lucid Group Stock Sank This Week was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
41 minutes ago
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Fox Factory Holding (FOXF) Earnings Expected to Grow: Should You Buy?
Wall Street expects a year-over-year increase in earnings on lower revenues when Fox Factory Holding (FOXF) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 7. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Zacks Consensus Estimate This vehicle suspension maker is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +13.2%. Revenues are expected to be $345.17 million, down 1% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 2.35% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Fox Factory Holding? For Fox Factory Holding, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -24.88%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Fox Factory Holding will beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Fox Factory Holding would post earnings of $0.22 per share when it actually produced earnings of $0.23, delivering a surprise of +4.55%. Over the last four quarters, the company has beaten consensus EPS estimates three times. Bottom Line An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Fox Factory Holding doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. An Industry Player's Expected Results Another stock from the Zacks Automotive - Domestic industry, Lucid Group (LCID), is soon expected to post loss of $0.22 per share for the quarter ended June 2025. This estimate indicates a year-over-year change of +24.1%. Revenues for the quarter are expected to be $253.43 million, up 26.4% from the year-ago quarter. The consensus EPS estimate for Lucid Group has been revised 2% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +3.08%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Lucid Group will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
