The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Analyst Warns of Limited Upside for Apple's Quarterly Numbers

TMO Reports - Analyst Warns of Limited Upside for Apple's Quarterly Numbers

by , 1:15 PM EDT, April 13th, 2005

Apple's upside for the March quarter is limited, according to a Wall Street analyst. In a research note to clients obtained by The Mac Observer, Banc of America Securities analyst Keith Bachman warned clients that Apple's upside is no more than 24-25 cents per share in earnings, which is two to three cents per share higher than consensus estimates, and four to five cents per share higher than Banc of America's estimates of 20 cents per share.

"For March, we are looking for US$3.0 billion in revenues (versus consensus of $3.2 billion), and EPS of $0.22 (versus consensus of $0.24), which is based on 4.6 million iPods," he wrote. "Using a different set of assumptions, including iPod units of 5.7 million, we believe that Apple could deliver EPS upside of $0.04 to $0.05 higher than our published estimate. We believe that investors looking for more potential upside than this will be disappointed."

Mr. Bachman maintained a Buy rating on AAPL, based in part on strong growth in the online music download business, though he believes Apple will lose market share going forward.

Apple's shares tumbled more than 3% in morning trading, and are currently trading down by a dollar per share in heavy volume.

Apple will announce results for the March quarter, the company's fiscal 2nd quarter, today, April 13th, 2005, after the markets close. The Mac Observer will cover the results as soon as they hit the wires.

*In the interest of full disclosure, the author holds a small share in APPL stock that was not an influence in the creation of this article.  


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Guest
Subject: wonder why?

Perhaps if these same analysts wouldnt raise their estimate on a daily basis we wouldnt be hearing about Apple ONLY being 4-5 cents over estimates.

Why dont they raise their estimates by a dime and say Apple is going to fall short by 4-5 cents. I mean, if they really want to hurt the stock, thats the way to do it.

Close Name:Guest
Subject: The sky is falling!

The sky is falling! The sky is falling! Sorry R.C., had to beat you to it. Long day at school?
: )

Close Name:Guest
Subject: Analyst...

Analyst..they do the best they can, but they never predicted the iPod or the storm it would create. Hopefully Apple has a few more surprises.

Close Name:Guest
Subject: before rc opens his mouth

apple shares ALWAYS "tumble" on the day they report earnings.

Close Name:Guest
Subject: "Limited"

Why is 4-5 cents considered limited? I haven't seen many other companies recently going over by more than 2 cents!

Anyway, today was a buying opportunity if you had the guts!

Close Name:DocRoss Posts: 33 Joined: 06 May 2004
Subject: Ummmm. I meant upside of "only $.34-.35"

Sorry for the confusion.
You may repurchase the stock you shorted now.

Close Name:Guest
Subject: CUE RAUCOUS BUZZER SOUND......

WRONG!!!!!!!!! 34 CENTS A SHARE, YOU MAROON! BEAT YOUR ESTIMATE BY 14 FREAKIN' CENTS!!!!!

Pity any poor saps who let this guy, or his company, manage their money.

Oops.

Comment on this Article


You cannot edit your comments.   You cannot delete your comments.

Comments are currently closed. Please email the author instead.


Recent Headlines - Updated February 13th

Mon, 9:15 AM
News - Apple Files Motion to Stop Galaxy Nexus Sales in U.S.
8:20 AM
News - Steve Jobs Given Trustees Award at the Grammys
Sat, 4:11 PM
MacOS KenDensed - MacOS KenDensed: iPad 3 Frenzy, Big-time Apple & Steve Jobs, G-Man
Fri, 8:10 PM
News - Apple Sues Motorola Mobility in California Over German Case
7:54 PM
Free on iTunes - OnLive Desktop: Windows & Office on Your iPad
7:43 PM
Product News - Apple Rolls Out MacBook Air Configurations for Education
6:35 PM
Just a Peek - Battle Pocket Bulge With The Hint for iPhone
6:01 PM
Rumor - Apple Reportedly Bringing MacBook Air Styling to Pro Line
4:50 PM
Particle Debris - The Hidden Gotchas of Browser Security
3:56 PM
Apple Stock Watch - Analyst: Paying a Dividend Makes Sense for Apple
2:58 PM
Deal Brothers - iMac 27-inch 2.93GHz Intel Quad-Core i7 processor:  $1,999
2:45 PM
In-Depth Review - Theodolite App for iOS is Breathtaking

The Mac Observer Reader Specials

  • TypeStyler 11 is now in the Mac App Store!! -- Special Introductory Price of $59.95!! -- To Buy From The Mac App Store Click Here Now!! Or buy direct from Strider Software.
  • Mac RAM Upgrades: MacBook Pro 16GB kits $475, 8GB Kits for $119.99! iMac 16GB RAM Kits (4x 4GB) for $229.99! Mac Pro Memory 32GB Kit for $399.99, 64GB Kit for $889.99! Mac Hard Drives 2TB Seagate SATA II for $249.99! Click Here!
  • Poker Mac If you're using a Mac, then you've gotta check out Online Poker Mac. This mac poker and online casino mac site actually does the unthinkable, it actually rewards!
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!