12/16, 11:50am
Apple financials examined
Shaw Wu of the Kaufman Brothers has updated estimates of Apple's December quarter, Rating Apple stock a buy with a favorable risk-reward balance. Wu's estimates have seen little movement, with a more conservative approach on iPods, but assuming a higher average sales price (ASP). Expectation are of reductions in the strong European iPhone sales, primarily due to iPhone gift cards; many won't be activated between Christmas and New Year's, moving the profits to the March quarter.
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01/22, 5:50pm
Apple shares plummet
Apple's shares plummeted in after-hours trading today, nearly $19 per share or just over 12 percent to stand at $136.82 as of 5:35PM ET. Shares had already lost about 3.5 percent during normal trading hours on volume of about 85 million. That means Apple's shares are off more than 30 percent from their 52-week high of $202 reached in late December, 2007. Propelling the earnings decline was Apple's earning forecast. For its second quarter, Apple expects earnings of about 94 cents per share on about $6.8 billion in revenue. Analysts expected earnings of $1.09 per share on revenue of $6.98 billion. This despite the fact that Apple is predicting a 29 percent increase in revenue year-over-year, while last march revenue grew only 21 percent.
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