Apple expects a blowout 4th quarter, Morgan Stanley says

Tim Cook

(CBS / "The Late Show with Stephen Colbert")

Apple's spending plans suggest that it expects to blow past most analysts' revenue projections for the December quarter, according to a new note from Morgan Stanley.

Apple's last quarterly report revealed $29.5 billion in off balance-sheet commitments, and $7.3 billion in other commitments, at the end of the September quarter.

These usually represent money that Apple is planning to spend on parts and manufacturing equipment, so analysts can use these numbers to estimate how much Apple is expecting in sales.

Using that method, Morgan Stanley believes that Apple is expecting $84.4 billion in revenue for the December quarter, 9% higher than current analysts' consensus. Apple has beat consensus by 1% in the last two quarters, and by 3% on average since 2013.

Apple is also planning $15 billion in capital expenditures — including things like manufacturing capacity — during the fiscal year, which come out to $252 billion in revenue during the year, or 3% above consensus.

Morgan Stanley has an "overweight" rating on the stock, meaning that it expects Apple to outperform similar stocks, and a price target of $152.

NOW WATCH: Every square foot of an Apple store is designed to make you spend more money

More From Business Insider

• Apple's latest iPhones are the most powerful smartphones you can buy
  

• A Chinese smartphone company is making big moves, and Samsung and Apple need to watch out
  

• The hottest apps on the new Apple TV offer some interesting insights