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: Apple Earnings Likely Above Guidance

Analyst: Apple Earnings Likely Above Guidance

by , 7:50 AM EST, January 17th, 2007

After conducting a survey of 20 Apple specialist stores and a review of NPD data, Piper Jaffray's Gene Munster has concluded that Apple Inc. will likely report earnings on Wednesday that are slightly above estimates. The Street consensus places the number of Macs sold for the December quarter at 1.75 million, and the number of iPods at 15.75 million.

The company is also expected to report US$6.42 billion in sales with $0.78 EPS. If Mr. Munster's estimates are correct, however, Apple will come in above those numbers.

Apple has a long track record of guiding conservatively and then hitting the middle of its guidance range. He commented "Specifically, over the last seven quarters, Apple reported revenue above the mid-point of its revenue guidance range in each quarter. On average, the company beats the mid-point of its revenue guidance range by 8 percent."

Focusing on the March quarter, Apple is likely to offer guidance in-line with or slightly below analyst estimates with $5.22 billion in revenue and $0.60 EPS.

"We continue to believe Apple has multiple growth drivers in CY07 and beyond," he said. "Near-term drivers include continued Mac market share gains, new operating system release (OSX Leopard with in the next 3-4 months), and AppleTV (to be released in February)."

Long-term growth is expected to be fueled by the iPhone and the continually growing content library at the iTunes Store.

Mr. Munster is rating Apple as "Outperform," with a target price of $99. Apple stock is currently trading in the pre-market at $97.49, up 0.39 (0.40%).


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.

Digg!

Recent Headlines - Updated October 31st

Fri,6:58 PM
Pee-Wee Herman Stars in Avengers Trailer
6:34 PM
Trent Reznor on Working for Apple: ‘It’s Everything I Asked For’
5:50 PM
Last Chance for The Complete iOS 8 Course With Swift for $89
4:42 PM
MacTech Conference 2014: Talk to Kelly and Dave!
4:30 PM
Apple Wins the Old-fashioned Way: Outsmart the Competition
3:00 PM
Judge Rules Cops can Force You to Touch ID Unlock your iPhone
2:02 PM
iOS 8: Adding Fitness App Data to the Health App
1:16 PM
TMO Daily Observations: 2014-10-31
11:25 AM
How To Clean Up and Rebuild Apple Mail Data [Yosemite Update]
9:39 AM
Judge to Unseal GT Advanced Bankruptcy Filing Documents
8:45 AM
Yosemite: Maximizing Windows & the Green “Stoplight” Button
Thu,7:17 PM
Meijer, the CurrenctC/MCX Member Who Refuses to Block Apple Pay
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!