Here's what every major analyst had to say about Apple's first-quarter earnings report

Published Fri, May 1 20206:28 AM EDTUpdated Fri, May 1 20209:46 AM EDT

(This story is for CNBC PRO subscribers only.) Wall Street analysts are breathing a sigh of relief after Apple 's earnings results on Thursday after the bell. The first-quarter report wasn't stellar as the company saw slower revenue and didn't issue June quarter guidance. It was just a little more than two months ago when Apple gave a hint of things to come by withdrawing its monthly guidance due to the coronavirus crisis. But with the pandemic causing fear and panic in all parts of the market, it was probably the best investors could hope for analysts said. The stock dipped slightly after the report and is down almost 1% in early trading. Analysts, however, urged clients to look at the long-term picture, including the 5G iPhone launch later this year. The company also posted record services revenue, increased its dividend by 6% and upped its buyback by $50 billion . Here's what else analysts said about the company's earnings report: "We recognize that near-term minded investors will find plenty of items to support a negative view on the stock but we believe in the weeks and months ahead, consensus will look back and realize Apple's decisions were not only caring & prudent but also that consumers will elevate the brand and products even higher going into the new 5G product launch," Citi's analyst said. The analyst added he believed the 5G iPhone was on track to launch in September and that's really what investors should focus on. Other analysts felt confident investors would look at the bigger picture rather than the actual results. "We are confident in sustainable long-term growth in light of stretched iPhone replacement cycle and the upcoming 5G iPhone launch, upside to Services revenue per user relative to peers and Apple's strong balance sheet that allows for innovation investments and share repurchases during even a prolonged downturn," Morgan Stanley analyst Katy Huberty said. The firm said Apple was still a top pick. "Nothing in Apple's March quarter earnings report changes our view on any of these factors." The sentiment was similar at Oppenheimer. "All in all, it played out largely as expected and we remain bullish," Oppenheimer said. The lack of June guidance wasn't surprising and it comes back to 5G for Apple, according to Raymond James. "Our optimism for the stock is about 2021. We think upgrades to 5G are inevitable, and those who don't buy a phone this year will have a strong incentive to buy one next year, particularly with more complete 5G networks and our belief of a stronger 2021 iPhone feature set," they said. Another analyst was a bit more subdued. "Even prior to COVID-19, the bull case on Apple was always precipitated on the 5G iPhone cycle in FY21," Bernstein analyst Tony Sacconaghi said. Still, he admitted things are looking up. "While AAPL remains expensive and has outperformed YTD, we believe the near-term and longer-term story is somewhat more attractive." Evercore ISI- Outperform, price target to $330 from $325 "Key points to focus on: 1) June-qtr guide implies revenues in the range of $52-54B, the trend is modestly worse vs. expectations but reflects much stronger March. 2) Services continues to surprise on the upside with 17% growth and 65%+ gross margins, 3) We think iPhone launches are on track for fall-2020 for all models, 4) Capital allocation: 6% dividend increase, $50B more authorization, folks may have expected more and 5) Gross-margins have a severe f/x drag in June but we think they will be flat as mix should offset these headwinds. Net/Net: AAPL remains well positioned to sustain midsingle digit sales and mid-teens EPS growth on a multi-year basis and think they can achieve $15+ EPS by FY21 making this a core large cap tech holding." Citi- Buy rating "On Thursday night, Apple followed our long held view of 'doing the right things and those actions will eventually pay off.' We recognize that near-term minded investors will find plenty of items to support a negative view on the stock but we believe in the weeks and months ahead, consensus will look back and realize Apple's decisions were not only caring & prudent but also that consumers will elevate the brand and products even higher going into the new 5G product launch. We expect 5G iPhones to be announced in September and available in October. Yes, we believe consumers do remember companies that do good for society and typically reward them with business (the opposite can also be true), especially in consumer electronics." Barclays- Equal Weight rating, price target to $288 from $268 "Apple results were not as bad as feared, but limited guidance into the June quarter is surprising. iPads and Macs are strong on work-from-home, but the deceleration in growth at Wearables and Services is larger than we expected. We remain concerned about iPhones given the potential ASP increases for the flagship devices later this year. We lower FY20 EPS but raise FY21 as we do see a recovery after a rough period, and a later 5G iPhone launch." Bernstein- Equal weight rating "Apple's Q2 results were notably better than expected on revenues and EPS, thanks to a surprisingly fast rebound in Chinese production capacity. ... .We continue to believe that FY20 really doesn't matter to the Apple investment thesis. Even prior to COVID-19, the bull case on Apple was always precipitated on the 5G iPhone cycle in FY21. ... .Apple's Q2 results were notably better than expected (revenues grew +0.5% YoY, or 7% above consensus), thanks to a surprisingly fast rebound in Chinese production capacity. ... .While AAPL remains expensive and has outperformed YTD, we believe the near-term and longer-term story is somewhat more attractive." Baird- Outperform rating, price target to $320 from $315 "Yesterday afternoon AAPL reported better-than-feared FQ2 results, and provided trend lines for FQ3 that were mixed to positive, though expectations had also been rising based on recent stock action. Most importantly, we believe the product lineup and future opportunities remain solid, supported by continued revenue diversification that included a quarterly services record. We remain positive on the long-term eco-system and product development opportunities, coupled with a strong balance sheet and brand position." Oppenheimer- Outperform rating "Apple reported a strong quarter all things considered. Results topped our expectations, and we change our estimates little at this time. Similar to many other companies that have reported, Apple was tracking to the high end of its guidance prior to COVID-19. As the crisis has shifted from one region to another so has the company's performance. Mgmt indicated it's continuing to invest in new products and services, focused on reopening stores, and its first virtual WWDC. The company raised the dividend and increased the buyback by $50B. Due to high levels of uncertainty, the company is not guiding to the June quarter but did provide some clues. All in all, it played out largely as expected and we remain bullish." Morgan Stanley- Overweight rating, price target to $326 from $298 "With increased confidence in the 5G iPhone launch and stretched iPhone replacement cycles, Apple remains top pick. ... .We are confident in sustainable long-term growth in light of 1) stretched iPhone replacement cycle and the upcoming 5G iPhone launch, 2) upside to Services revenue per user relative to peers, and 3) Apple's strong balance sheet that allows for innovation investments and share repurchases during even a prolonged downturn. Nothing in Apple's March quarter earnings report changes our view on any of these factors." Deutsche Bank- Buy rating, price target to $305 from $285 "However, comments about an improving late-April across the board could also be interpreted bullishly, a new iPhone is rarely released in the Spring, and Services are a larger portion of revenue and exhibits less seasonality, which could all drive an above seasonal result. We reduce our NT Jun/Sept estimates, though our LT CY21 estimates stay relatively unchanged, upticking slightly on a higher LT services GM% profile and a slightly more pronounced CY21 snapback, offset by slightly higher opex. Long-term, we continue to believe that AAPL is the best name to own in the IT Hardware landscape." Bank of America- Buy rating, price target to $320 from $310 "(1) Revenues holding up relatively well despite the severity of the COVID-19 pandemic (2) weakness in iPhone and wearables in C2Q is transitory, (3) channel inventory at a good level and supports sell-in, (4) commentary on call suggests that cadence of new product launches remains strong and bodes well for 5G iPhone launch this year, (5) retail demand remained strong in C1Q as higher online sales offset lower demand from store closures and pent up demand kicks in as economies reopen." Credit Suisse- Neutral rating "Apple's fortress of a balance sheet provides significant flexibility in the downturn (both operationally and strategically) and stands as a key differentiator vs. peers. That said, we expect lingering macro pressure to weigh on iPhone replacement cycles, even with the addition of 5G, that doesn't seem to be embedded in the current valuation at > 20x CY21E EPS." UBS- Buy rating, price target to $325 from $290 "The company did not provide guidance, but was directionally constructive in that it has seen an across-the-board improvement in demand during the 2H of April – in AAPL's view a combination of recent government stimulus, some generally improved consumer behavior, and some new products. Yes, the re-upped share repo authorization was lower than prior years, but a touch of austerity in the current environment has been the across the board trend – and given what remains from the prior plan, repo activity should not come down a whole lot. While we are still modeling slippage from CQ3 into CQ4 and CQ4 into CQ1:20, the story here is still about a new iPhone with just enough 'new' to drive a very strong 2021 and a multiple that is supported by services now being ~40% of GP dollars." Nomura Instinet- Neutral, price target to $250 from $240 "F2Q results modestly exceeded consensus expectations, though, as expected, fell below Apple's initial guidance. Apple's indications of large swings in both supply and demand plus a decision to abstain from F3Q guidance leaves these results open to more than typical interpretation. Our read is that F3Q is likely to be softer than feared. Our willingness to look through a soft 3Q is tempered by little confidence that a strong supercycle lies beyond. We lower sales estimates but raise EPS on a restored buyback." Canaccord- Buy rating, price target to $310 from $300 "Despite the near-term uncertain demand environment for Apple's hardware products, we believe Apple is well-positioned to benefit from a 5G upgrade cycle and anticipate recovering earnings in C2021 as 5G smartphones ramp and Apple continues to grow its installed base and higher-margins services revenue. Apple's ecosystem approach, including an installed base that exceeds 1.5B devices globally, should continue to generate strong services revenue, and we expect the higher-margin services revenue growth to outpace total company growth." JPMorgan- Overweight rating, added to the focus list, price target to $350 from $335 "Cycling past the F2Q (Mar-end) results and absence of the F3Q (Sep-end) guide (as expected), we now see AAPL shares poised to outperform the broader market on the combination of: 1) better than expected momentum continuing for the new iPhones launched in Sep-19, which would have enabled Apple to hit the high-end of its prior issued guidance range for F2Q, but for COVID-19; 2) already seeing improving product revenue trends in second half of April, following the iPhone SE launch and government stimulus." Piper Sandler- Overweight rating, price target to $310 from $300 "However, the big news was the company not providing June quarter guidance. ... .Despite the broader weakness, the services segment appears to be fairly resistant to economic uncertainties, although AppleCare and advertising revenue are likely to suffer in the near term. Overall, the company continues to execute in the current environment and remains focused on the long-term. Raymond James- Outperform rating, price target to $340 from $305 "They declined to provide June guidance – we didn't find that surprising since retail activity is curtailed in most markets outside China. We do expect June demand to be impacted, but we think better Mac and iPad will help to offset slower iPhone and wearables. We've also adjusted 2HC20 estimates to reflect a C4Q iPhone launch – so investors should be prepared for weak September results, followed by a better December. But our optimism for the stock is about 2021. We think upgrades to 5G are inevitable, and those who don't buy a phone this year will have a strong incentive to buy one next year, particularly with more complete 5G networks and our belief of a stronger 2021 iPhone feature set. Net, we think COVID delays rather than destroys demand for the 5G iPhone."

Apple CEO Tim Cook speaks during an Apple launch event in the Brooklyn borough of New York, U.S., October 30, 2018.

Shannon Stapleton | Reuters

(This story is for CNBC PRO subscribers only.)

Wall Street analysts are breathing a sigh of relief after Apple's earnings results on Thursday after the bell.