Apple Q2 results forecast to top guidance, consensus
updated 03:55 pm EDT, Mon April 20, 2009
Kaufman AAPL Q2 preview
Scheduled to announce the details late Wednesday, Apple should do fairly well in its second fiscal quarter for 2009, argues Kaufman Bros. analyst Shaw Wu. Low components prices are forecast to push gross margin beyond a guided 32.5 percent, which in turn is prompting Kaufman to raise its other estimates. Assuming a margin of 33.5 percent, Apple is expected to show $8 billion in revenue, producing EPS of $1.13.
The figure compares with a consensus view of $1.09 in EPS on $7.9 billion, and official Apple guidance of 90 cents to $1 in EPS on $7.8 to $8 billion in revenue. Aiding the company aside from margin may be unexpectedly healthy sales, given the context of a global recession. Mac shipments are now being pegged at 2.3 million instead of 2.2, while iPod numbers may hit 10 million rather than 9.8. iPhone predictions are currently 3.2 million, over previous suggestions of a flat 3.
Wu warns that Apple shares are likely to be "volatile" around the time of the official earnings report. The company is thought to be in a good position though, and Wu suggests buying stock during a low prompted by overreaction. The Kaufman price target for Apple remains at $152.
Fresh-Faced Recruit
Joined: Jul 2008
Apple IS smart
Apple's vaunted secrecy enables it to spin or saying nothing (a different type of spin) on good or bad news. If they come out looking good then the analysts should look bad. But that doesn't seem to make any sense to investors for institutions who jump all over the place. Who wouldn't like to have their unaccountable for jobs?
When I had bought Apple stock I just held onto it until I needed the money for purchasing a home. And, the stock went higher. I wasn't greedy, it served me well... something these institutional investors should learn.
I have a feeling Apple is selling more items than the analysts are finding out about... that suits Apple just fine.