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AAPL Stock: 113.99 ( + 1.98 )

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Analysts optimistic after Apple Q209 results

updated 03:15 pm EDT, Thu April 23, 2009

Analysts on Apple Q209

Results for Apple's second fiscal quarter were better than expected, and promising for the future, say analysts. The company achieved nearly $8.2 billion in revenue, producing EPS of $1.33. iPod sales measured in at 11 million, beating expectations of just 9 to 10 million; some 3.8 million iPhones were sold, as compared to predictions of 3 to 3.2.

The company's success in the face of recession is mainly being attributed to gross margins, which came in at 36.4 percent, trumping official guidance of 32.5 percent, and estimates of 33.1 and 33.5 percent from UBS and Kaufman Bros., respectively. UBS analyst Maynard Um notes that Apple has lucked into low component prices, as well as lower freight and warranty costs. Kaufman's Shaw Wu adds that international growth has been a boon, jumping 18 percent year-over-year in both Europe and Japan.

Mac sales of 2.2 million are said to be disappointing, but still better than some expectations, according to Wu. Kaufman is holding to a price target of $152 for Apple stock, while UBS is raising its target from $110 to $130. Um observes, however, that Apple would likely perform better if it had less expensive Macs, particularly in terms of notebooks.




by MacNN Staff

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  1. climacs

    Joined: Dec 1969

    +2

    f'ing shoot me

    Um observes, however, that Apple would likely perform better if it had less expensive Macs, particularly in terms of notebooks.

    So, they love Apple because of their big fat margins but they'd make more money... if they didn't have such big, fat margins.

    Many of these analysts were predicting less than stellar results for Apple prior to Wednesday's 2Q annoucements. Now they are all climbing on the bandwagon... at least, until Apple fails to meet their now-unrealistic pie-in-the-sky predictions for Apple in 3Q.

    It's like being with a bipolar girlfriend. Is there anything more useless than these analysts? Even weathermen have more 'nads than these guys... no weatherman would say, "Well since it's been sunny the last week, I predict sunshine for the next 6 months!"

  1. climacs

    Joined: Dec 1969

    +1

    $152? $180?

    he's not listed here but one analyst recently pegged Apple at $180. RUFKM? in this economy?

    Even $152 sounds terribly optimistic, and I'm a certified AAPL buttboy. I wish it would go that high but I'm highly pessimistic. I think it's going to peak in the $130-$140 range before collapsing due to renewed general concerns about the economy, which hasn't quite bottomed out yet.

  1. testudo

    Joined: Dec 1969

    -4

    Re: f'ing shoot me

    So, they love Apple because of their big fat margins but they'd make more money... if they didn't have such big, fat margins.

    Nothing in the quote said anything about margins. It talked about having less expensive computers. You can make less expensive computers without having to take a hit on margins.

    And most analysts weren't predicting less-than-stellar results. If they were, Apple's stock wouldn't have been slowly climbing the last month leading up to earnings. That kind of movement isn't due to just a bunch of Mac fanboys who think its underpriced.

    In fact, checking out two things from MacNN that I could find, both were predicting mac sales of either 2.15 or 2.3. Both got slammed, of course, because they have no idea what they're talking about (I guess the posters figured Apple was going to sell more than 2.3 or less than 2.15).

  1. climacs

    Joined: Dec 1969

    +1

    @testudo

    I read several analysts' predictions of 2Q. Even the normally bullish ones were predicting Apple wouldn't meet the street's predicted numbers (which were, as usual, above Apple's conservative guidance).

    Now they are all climbing on board. Like I said, they're like a bipolar girlfriend.

  1. climacs

    Joined: Dec 1969

    +1

    @testudo

    You can make less expensive computers without having to take a hit on margins.

    yes, you can cut every single corner and make cheap, disposable computers like Dell and Acer.

    and/or, cut your retail prices. Which cuts your big, fat margins that analysts like so much.

  1. jmacofearth

    Joined: Dec 1969

    +1

    cheaper netbooks

    I guess Apple could choose to sacrifice margin for market and start loosing money on every netbook sold just like their pee cee brothers. Nah, while spoil a good thing. @jmacofearth

  1. jmacofearth

    Joined: Dec 1969

    -2

    cheaper netbooks

    I guess Apple could choose to sacrifice margin for market and start loosing money on every netbook sold just like their pee cee brothers. Nah, while spoil a good thing. @jmacofearth

  1. Constable Odo

    Joined: Dec 1969

    0

    Has Jaguar, Ferrari or

    Lamborghini produced any equivalent economy-priced car during this period? Does anyone really expect them to come out with some cheap model so their sales will increase? Has Cartier announced some low-priced Tank watch for the budget-minded consumer? I don't think so. Why should Apple produce some budget special because the analysts say they should?

    Apple already has the MacMini and iPod Touch. They're cheap enough for anyone to buy. I say Apple should stay on it's present course and possibly offer a $600 tablet. That seems reasonable enough as long as they keep their 35% profit margins.

  1. testudo

    Joined: Dec 1969

    -3

    Right....

    I guess Apple could choose to sacrifice margin for market and start loosing money on every netbook sold just like their pee cee brothers.

    You really think the netbook makers are losing money on each one sold? Are you insane? Just because they're cheap doesn't mean they aren't profitable.

    And if you doubt it, here's a question. Why would they sell them for a loss? To dump inventory? No, because netbooks haven't peaked yet. To gain sales in other products? Well, that works for game consoles and razors, but if you buy a $299 netbook from Acer, are you going to be buying something else from Acer real soon to make up for the losses? Doubt it.

    Thus, it would make no logical or fiscal sense to sell at a loss. But feel free to live in your little world.

    I say Apple should stay on it's present course and possibly offer a $600 tablet.

    Apple can't stay on it's present course AND offer a $600 tablet. The present course is to basically stay in the top-end (like you say, just like Ferrari, which I'm not sure is an appropriate analogy, but feel free). A $600 tablet puts them in the low-end tablet market with all the other guys. Exactly how is that 'staying the course'?

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