12:23 PM EDT, 10/25/2024 (MT Newswires) -- Apple ( AAPL ) is expected to report fiscal fourth-quarter results modestly above market estimates next week, with iPhone demand seen picking up after the launch of artificial intelligence features in late October, BofA Securities said Friday.

The brokerage estimates the technology giant to report per-share earnings of $0.96 for the September quarter, including a $0.65 tax hit. Excluding the one-time hit, EPS are expected to "marginally beat consensus," according to BofA. The current consensus on Capital IQ is for normalized and GAAP EPS of $1.53 and $1.55, respectively.

BofA anticipates Apple ( AAPL ) to log revenue of $95.29 billion in the previous quarter, compared with the Street's view for $94.32 billion.

The brokerage predicts the iPhone maker to issue a better-than-expected outlook for its first quarter of fiscal 2025, amid increased demand for Apple's ( AAPL ) flagship product once it releases its Apple Intelligence later this month. Initial feedback on the integration of the iPhone's operating system with Microsoft (MSFT)-backed OpenAI's generative AI chatbot ChatGPT is positive, BofA said.

Apple ( AAPL ) announced a number of AI features in June debuting as Apple Intelligence across its devices and operating systems, including iPhone.

"As visual intelligence, ChatGPT integration and broader Apple Intelligence features become more mainstream and improved over time, the value of personalization will likely become increasingly relevant," BofA wrote in the note.

The brokerage estimates Apple ( AAPL ) to sell 80 million iPhones in the December quarter with marginally higher annual average selling prices year over year amid robust demand for the smartphone's Pro version. "We see potential strength from wearables (new AirPods, Watch series 10), new MacBooks and new iPads to boost" December-quarter revenue relative to Street estimates, BofA said.

For fiscal 2025, the brokerage projects Apple ( AAPL ) to report EPS of $7.62 and revenue of $428.12 billion, compared with its previous estimates of $7.66 and $434.98 billion, respectively. BofA reiterated its buy rating on Apple's ( AAPL ) stock with a price objective of $256.

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