updated 02:00 pm EDT, Mon July 21, 2008
Piper Jaffray analyst Gene Munster has put forth a set of expectations for Apple's Q3 earnings, due today after the US markets close. Munster believes that upside to Mac and iPod units may drive upside to the June quarter and is reiterating his Buy rating. While the street is expecting Apple to have shipped 2.2 million Macs in the quarter, Munster cites a buyside bias of 2.35 million units. He is also expecting shipemtn of about 10.5 million iPods, vs. the street consensus of 10.3 million.
Munster notes "As a reminder, Apple usually guides conservatively and we believe the company will guide slightly below Sep. quarter consensus of $1.25 on $8.34b."
Other analysts have also weighed in on Apple's earnings. An analyst with BMO (Bank of Montreal) Capital says investors should expect higher earnings per share (EPS) from Apple than previously predicted for FY09. Keith Bachman writes that although he had previously predicted an EPS of $6.21, he now thinks it will reach approximately $6.31, with an ultimate price target of $205. This is based not just on the imminent release of the iPhone 3G, Bachman notes, but on the strength of Mac sales.
For the most recent June quarter, Bachman estimates that Apple shipped between 2.5 and 2.5 million Macs, which would represent year-over-year growth of 39 percent. During FY09 it is believed that Apple CPU units will jump by 26 percent, versus the 11.5 to 12 percent predicted for the overall market.