Katie MarsalApple, which reports earnings for its fiscal first quarter later today, is likely to beat consensus estimates for both earnings and product shipments, according to one Wall Street analyst.
On average, analysts are expecting the Cupertino-based company to report earnings of $0.78 per share on revenue of $6.24 billion, based on sales of 1.75 million Macs and 15.75 million iPod digital music players.
Looking ahead to Apple's fiscal second quarter, Munster noted the company has "made a habit out of guiding conservatively," typically guiding at or slightly below Street consensus for each successive fiscal quarter. Similarly, he said, the company has routinely beat its conservative guidance.
"Specifically, over the last seven quarters, Apple reported revenue above the mid-point of its revenue guidance range in each quarter," the analyst wrote. "On average, the company beats the mid-point of its revenue guidance range by 8 percent."
For the fiscal second quarter ending March, the analyst expects Apple will guide primarily in-line with Street earnings and revenue consensus of $0.60 per share on revenue of $5.22 billion.
"If March quarter guidance is at or slightly below Street estimates, we believe investors will gloss over this information and assume the company is continuing its conservative trend," he wrote.
Munster maintained an Outperform rating on shares of Apple with a price target of $99.
"We continue to believe Apple has multiple growth drivers in [calendar year 2007] and beyond," he wrote. "Near-term drivers include continued Mac market share gains, new operating system release, and AppleTV."
Long-term drivers, he said, include iPhone, increasing iTunes content library, and other "currently unknown Apple innovations."
Wesley Hilliard
William Gallagher
Christine McKee
Malcolm Owen
Andrew Orr
6 Comments
[ View this article at AppleInsider.com ]
you think?
Does it seem ridiculous to anyone else that they maintain an "outperform" rating with a price target that's only about 3% above the current stock trading price? 3% on a 1 year investment is not at all what I would consider "outperforming".
Apple, which reports earnings for its fiscal first quarter later today, is likely to beat consensus estimates for both earnings and product shipments, according to one Wall Street analyst.
[ View this article at AppleInsider.com ]
The 100 calls went nuts yesterday, suggesting that the stock will break that level.
From my checks, AAPL will report monstrous Macbook numbers and absolutely ridiculous iPod shipments - but the stock has come so far in such a short time, I would almost expect a sell-the-news reaction.
Thanks to the iPhone though, there is a floor under the share price at least.
Should be a wild ride starting at 430....
Does it seem ridiculous to anyone else that they maintain an "outperform" rating with a price target that's only about 3% above the current stock trading price? 3% on a 1 year investment is not at all what I would consider "outperforming".
I think they mean "outperforming" the rest (or some subset) of the market.
So, if they expect the rest of the market to be down 10%, being up 3% would
be outperformance. (Plus they will probably update their target price if AAPL
blows away earnings expectations, as they seem to predict.)
Expect AAPL to plummet soon...