Analysts generally optimistic on Apple Q4 results
updated 10:25 am EDT, Mon October 19, 2009
Worries revolve around iPhone 3GS
Analysts are thought to be generally enthusiastic about Apple's fourth-quarter results, set to be announced at 2PM Pacific time on Monday, 5PM Eastern. Thomson Reuters suggests that the company is on average anticipated to record a 17 percent year-over-year rise in revenue to $9.2 billion, producing a 13 percent boost in earnings per share, amounting to $1.42. Apple's own EPS estimates are typically conservative, between $1.18 and $1.23.
Sentiment tracking firm Piqqem has meanwhile given Apple a score of 3.08, a "very high" rating suggesting a strong incentive to buy. The score has climbed 5 percent since the beginning of the fourth quarter. The firm also notes that of the 36 major analysts tracking Apple stock, some 16 have increased their EPS predictions within the last 30 days.
Driving forecasts are thought to be several factors, namely the release of Mac OS X Snow Leopard in late August, and new iPod touches in early September. iPhone sales are also widely believed to have been been strong, but the Wall Street Journal suggests that Snow Leopard will be a greater aid to maintaining high profit margins. Software is more profitable than hardware, the newspaper writes.
Some analysts have expressed serious doubts about the iPhone however, noting recurring shortages of the 3GS. Apple has been unable to keep up with demand, says Oppenheimer's Yair Reiner, and is very unlikely to meet consensus predictions of 7 million units. Some 3.5 million phones would have to have been shipped in the last 21 days of Q4, says Reiner.
Consensus calls for Apple's next quarter, ending in December, to produce $1.91 in EPS. Apple itself is expected to guide to $1.68.










