Wednesday, April 20, 2011

Apple (AAPL) Earnings - Business as Usual

Apple (AAPL) is Apple nowadays and has been for a long time - they lowball estimates, analysts add some sort of premium to the complete nonsense that Apple pushes out as guidance, and then Apple (AAPL) beats the analysts - usually by a huge margin.  At which point they lowball estimates for the next quarter.  Rinse, wash, repeat.  Come back in 90 days for the same thing.
  • Apple has beaten the average estimate of its earnings per share for at least 28 consecutive quarters, according to data compiled by Bloomberg. 

Revenue came in $1.25B+ over estimates.  EPS came in at $6.40 v $5.39.  Revenue up 83% year over year, which for a company of this size ($24B quarterly revenue) is astounding.  Some hissy fits about the iPad sales missing expectations but I would not be too concerned.  They low balled guidance big time - shocking.  Any questions? hah.
  • The company sold 3.76 million Macs during the quarter, a 28 percent unit increase over the year-ago quarter. It sold 18.65 million iPhones–113 percent more than it did a year ago. But it sold just 4.69 million iPads; the Street had been looking for 6.2 million. 
  • Gross margin was 41.4% last quarter, compared with 41.7% a year earlier
  • Earnings of $5.03 per share on revenue of $23 billion. Analysts had been expecting earnings of $5.25 per share on revenue of $23.8 billion. 
In Apple talk that means they should do $6.50+ next quarter.


The stock chart is very interesting - the stock has clearly been making a series of lower highs (bearish) since mid February.  And truth be told, for such stellar results, the stock is not reacting much in the after hours.   But you can see it has had a huge 3 day run from $320.  (huge considering the massive market cap)  The stock is trading around $350 which is still not above the last high, from late March.  Would definitely like to see $355 cleared for a change of pattern in the near term chart.  But excluding the chart, and looking fundamentally - just a rockstar company.

No position

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