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Wall Street is starting to get worried about Apple's earnings report

  • JPMorgan believes Apple's June quarter guidance will come in below expectations as consumers look forward to the next iPhone.
  • The firm says there is a "better-than normal chance" the company will show off the new iPhone at the Worldwide Developers Conference in June.
  • UBS also expects weak Apple results in the near-term, but is bullish on the company for next year.

JPMorgan and UBS warned investors that Apple's near-term results may come in below expectations.

However, both firms reiterated their buy ratings on the smartphone maker because of optimism over the next iPhone likely coming in the fall.

Apple is slated to report fiscal second quarter earnings on May 2.

"We remain bullish on Apple in 2017 given what we believe is unprecedented pent-up replacement demand, combined with expectations for a materially different iPhone product this year. Having said that, we believe FQ3 guidance could be somewhat weak assuming Apple also believes consumers will want to wait for new product availability this fall," JPMorgan analyst Rod Hall wrote in a note to clients Friday.

Hall said there is a "better-than-normal chance" Apple will show off the next iPhone with its new OLED display at the Worldwide Developers Conference in June.

"We are a bit concerned about iPhone demand ahead of the launch of a compelling product in late 2017," he wrote. "We would see any weakness as a buying opportunity, though we note that generally positive views of this cycle may limit downside on the stock."

As a result, Hall's estimates for Apple's June quarter are $44.2 billion in sales and $1.53 in earnings per share versus the Wall Street consensus of $45.7 billion and $1.63.

UBS analyst Steven Milunovich told clients to look beyond Apple's March and June quarters. The analyst's June quarter revenue estimate is $45.4 billion, which is also below the Street average. His earnings projection for the quarter is a penny-per-share higher than the consensus.

"Most investors are focused on F18, which means the next few reports should be less important than usual," Milunovich wrote in a note to clients Monday. "We are slightly below consensus for the quarter and this year but above for F18."