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 July 24th

Mon,12:40 PM
Three Ways to Protect your Apple Watch (and One Way Not To)
Mon,10:42 PM
Google Brings Higher Resolution Satellite Imagery to Google Earth and Maps
9:10 PM
Google Bloks Will Offer Kids Hands-On, Collaborative Programming Concepts
8:44 PM
PRE-SALE: The Complete iOS 10 Developer Course at $29
5:15 PM
Game Foul: Ford Dealership Steals Firewatch Art
5:04 PM
TMO Background Mode: Interview With Symply Co-founder and President Alex Grossman
3:20 PM
iPhone 7 Sans Headphone Jack: The Debate Continues
1:58 PM
TMO Daily Observations 2016-06-27: AAPL, Brexit, Google Blocks
11:58 AM
Google Ready to Try Apple’s Tactics with New Smartphone
9:33 AM
Apple gets its Rainbow on for SF Pride Parade
Sun,12:18 PM
MGG 611: Troubleshoot & Resolve Your Mac & Apple Issues
Fri,7:00 PM
Apple Kills the Thunderbolt Display - Will the Mac Pro Be Next?
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!