DealsOnTheWeb Daily Deal: 8GB iPod Touch: $229 Delivered
Strong Q3, Q4 In Store for Apple
by , 11:35 AM EDT, April 25th, 2007
Tiger is delayed until October, iPhone doesn't ship until June, stock option grant issues still haunt the company, so what does Apple have to be positive about? Plenty, even though Apple will likely report second quarter earning driven primarily by iPod sales. Apple may offer investors a relatively quiet earnings report Wednesday afternoon, but the rest of the year should hold lots of good news for investors, according to The Street.
Investors probably won't see much added to Apple's bottom line from Apple TV sales yet because the device didn't start shipping until near the end of the quarter. Apple's third quarter, however, will likely be a different story since the home media appliance will have been shipping for a full quarter.
The iPhone will start shipping in June, which will add a partial quarter worth of sales to Apple's bottom line. Although the highly anticipated iPod/smart phone combination will be available for only about half the year, it will likely add a substantial amount to the company's annual earnings.
Apple's second quarter earnings, although not as rosy, should still be healthy. Romeo Dator, co-manager of the U.S. Global Investors All American Equity Fund, commented "I think they will report a slight upside to the consensus revenue and EPS."
Mr. Dator is predicting Apple will beat analyst expectations by reporting 10.7 million iPods sold while reporting in-line Mac sales at 1.45 million. Gross margins could also come in slightly higher than expected at 30 percent instead of Apple's guidance of 29.5 percent.
The general consensus is that Apple will report revenue for the quarter at US$5.17 billion with a $0.64 profit per share. Looking forward, analysts expect Apple's third quarter will end with $5.44 billion in revenue and $0.67 per share profit.
Apple will report its second quarter earnings during an investor conference call Wednesday afternoon. Be sure to check back with TMO for our event coverage.
Apple is currently trading at $94.11, up 0.87 (0.93%).
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
QuoteDo you think they will sell enough that it will actually impact their bottom line? Is anyone actually buying these things? I know its not exactly a scientific sampling, but I don't know 1 person who owns one. I don't know 1 person who wants one. I can usually get a good sense for things by looking at those around me and in this particular case its not very positive.Investors probably won't see much added to Apple's bottom line from Apple TV sales yet because the device didn't start shipping until near the end of the quarter. Apple's third quarter, however, will likely be a different story since the home media appliance will have been shipping for a full quarter.
And, just for the record, I'm not dismissing the whole living room media hub idea. I'm just not upbeat about the current Apple TV product.
Recent Headlines - Updated Monday, May 12th, 2008
- Mon., 9:40 AM
- iPodObserver - Rumor: New iPhones Now, Tablets at WWDC
- 9:15 AM
- iPodObserver - SingTel Announces Singapore iPhone Deal
- 8:40 AM
- Pixelmator 1.2 Draftsman Adds Rulers, Adjustments
- 8:15 AM
- iPodObserver - iPhone Unavailable at US, UK Apple Store
- 8:00 AM
- iPO Ted Landau's User Friendly View - In search of headphones for my iPhone
- 7:30 AM
- iPO Quick Tip - iPhone: Saving SMS Messages to Your Mac
- Fri., 6:00 PM
- iPO Free on iTunes - Aussie UFOs, StrangeThings, Hometown Tales and More
- 5:30 PM
- StrangeCharm - Fewer Particles, More Debris ( Week of May 5)
- 4:05 PM
- MW: The New Rules for Buying a Mac
- 3:15 PM
- OpenOffice 3.0 beta Released for Mac OS X
- 1:30 PM
- Pogue: Time Capsule is So Simple, Just Ignore It
- 1:05 PM
- C|Net: Why Apple Should Build a Game Console
- 10:45 AM
- Hot Forum Topic - The iPhone's March Across the World
- 10:20 AM
- Mailplane 2 Beta Includes OmniFocus Support
- 9:45 AM
- iPodObserver - Apple Canada Offers $45 Credit in iPod Suit
- 9:05 AM
- Apple Settles Power Adapter Suit
- 8:05 AM
- Microsoft Dissolves Yahoo Proxy Board
- 7:30 AM
- TMO Quick Tip - Tracking Application Updates in Dashboard
The Mac Observer Reader Specials
- Download Typestyler, still the Ultimate Styling Tool for Internet, Print and Video Graphics. Works great in Classic with a Native OS X Version on the way. Free Tryout: www.typestyler.com
- Other World Computing: Go Longer Between Charges with a NewerTech NuPower Batteries! Not just another battery, NuPower available for PowerBook and iBook models, is built in the USA to offer the longest Run Time + the longest useful LifeTime too! In Stock at OWC from $99.95
NEW MacPro Memory 800Mhz With Apple Spec Heat Sink 2GB Kit $104 / 4GB Kit $184 / 8GB Kit $362 Click to Maximize your Macs...
Mac observers can now play Party Poker for Mac as well as Mac casino games by going to MacPokerOnline.com.For the latest Apple products use Ciao a comparison website to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate cell phones.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.

