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