Apple Daily Stock Updates
Gateway is reporting disappointing sales for the calendar 4th quarter and has just been cut to junk status. Following such news many analysts will assume that other PC makers may have a sluggish quarter.
Merrill Lynch just reiterated its cautious near-term view on Apple, pending the release of 4th calendar quarter results. Their concern is inventory numbers and how much product Apple sold through to consumers.
Apple closed the week on 1/11 at just over $21 per share, down from the pre-MacWorld Expo opening on Monday. During the week Apple stock experienced above-average volume.
Analysts and investors may now be looking for the forthcoming earnings report for the fiscal 1st quarter of 2002 (the fourth calendar quarter of 2001) for information on holiday season sales and product inventory as of the end of the year, as well as guidance from Apple on anticipated sales for the 1st and 2nd calendar quarters of 2002.
Apple will release earnings on Wednesday (1/16). A Webcast conference with analysts will occur at 2:30 p.m. PST. Please check the Apple site for more info.
I enjoy this thread. I check it every day.
Yes, DT, it’s a great thread! Keep it up!
Editor - The Mac Observer
Favorite (but less relevant than it used to be) Quote: Microsoft’s tyranny lies not in its success, but in the way it achieved and maintains that success.
Apple closed on Tuesday (1/15) at $21.70 per share. This price is about equal to the 50 and 200 day moving averages on the stock. Volume has been steadily increasing and now averages just over 5 million shares per day.
On Wednesday (1/16) Apple will release earnings for the first fiscal quarter of 2002 (the 4th calendar quarter of 2001). Wall Street is expecting earnings of $.11 per share. Apple reduced expectations early in the 1st fiscal quarter due to the 9/11 attacks and resulting effect on the economy and what had been seen as a continuing slowdown in consumer spending.
Several analysts now believe earnings from many technology companies may be a little better than expected at the beginning of the quarter due to an up tick in consumer confidence during the October thru December period.
At 2:30 p.m. PST on Wednesday, Apple will hold a conference call with analysts to discuss its quarterly results. The conference call will be available by Webcast. Please see the Apple site for details.
In addition to announcing the company’s sales for the quarter, analysts will be looking to Apple to provide guidance on expected sales during the current quarter as well as guidance for the remainder of the fiscal year.
I also expect Apple to announce the number of new iMacs that have been ordered since last week’s introduction.
Please check this thread late tomorrow evening for a recap of Apple’s announcements.
Apple stock closed today (1/16) prior to the company’s earning report at $20.78 in a down day on Wall Street. The share price rebounded in after hours trading following the release of its financial report for the first fiscal quarter of 2002 (the 4th calendar quarter of 2001).
For the quarter Apple posted net earnings of $38 million or $.11 per share, in line with Wall Street’s expectations.
During the quarter Apple shipped 746,000 Macs and garnered revenue of $1.38 billion dollars, slightly lower than expected. The company cited promotional pricing during the quarter as one reason revenue came in a little below forecast.
For the current quarter Apple expects to earn an identical $.11 per share on revenue of $1.5 billion. Apple expects higher costs from the rollout of the new iMac and higher component costs to keep earnings for the quarter at $.11 per share, despite the anticipated rise in revenue.
Gross margins for the December-ending quarter were 30.7%. Apple closed the quarter with almost $4.4 billion in cash.
During the conference call with analysts Apple indicated that it would continue production on the old-style iMac for buyers interested in sub-$1,000 PCs. Apple cautioned that education sales moving forward might be impacted by the effects of the recession. Apple has factored softness in the education into its forecasts.
Apple said that rising component costs might pressure margins in the current quarter but that demand for the new iMac, since its introduction at MacWorld last week, is greater than the demand for any Apple product since the original iMac debuted over 3 1/2 years ago. It will take the full three months of this quarter for Apple to ramp-up manufacturing on the new iMac to meet demand.
All things considered, Apple performed well under difficult economic circumstances. I believe the company will be challenged to meet the full demand for the iMac in the current quarter. With the focus on the iMac, it may be some time before Apple introduces major changes to its pro-line computers.
Interesting to note Apple’s earning in light of the precipitous drop in interest rates over the past year. In prior quarters interest and earning on the company’s cash and investments provided a more significant boost to the company’s overall earnings. Apple met its earning estimate despite the continued drop in interest and lower return on its cash and investments.
In my view, the quarter’s results reflect excellent management of the company’s resources and solid evidence that Apple continues on track to increase its market share and improve the quality of its earnings.
Apple stated that 40% of Mac buyers at the new Apple Stores are new to the Mac platform. Apple expects the retail stores to be key to its strategy to increase market share.
Over 10 million shares of Apple stock traded hands today. I expect high volume again tomorrow and for several Wall Street analysts to review their rating on Apple following the release of the December quarter’s results.
<font size=-1>[ This Message was edited by: DawnTreader on 2002-01-16 23:46 ]</font>
Apple closed today (1/17) at $22.48, up $1.70 on the day. The strong gain follows release of Apple’s financial reports for the December quarter. Almost 12 million shares changed hands, more than twice the average daily volume.
Earlier today AG Edwards & Salomon Smith Barney upgraded the stock in response to the earnings report. Apple is poised to grow much more quickly than the overall US economy in the coming two quarters as well as outpace the rate of growth of the consumer PC divisions of its major hardware competitors.
It appears that Wall Street is responding positively to Apple’s results for the December quarter.
<font size=-1>[ This Message was edited by: DawnTreader on 2002-01-17 20:51 ]</font>
You know, DT, you actually predicted the whole thing. Spot on!!! Cool!!!
On 2002-01-17 19:41, hledgard wrote:
You know, DT, you actually predicted the whole thing. Spot on!!! Cool!!!
Thank you (blush). For my next trick…
I suspect that a significant portion or today’s (1/17) extraordinarily high volume was a combination of short sellers (people who “borrow” shares from other investors, sell them and plan to repurchase the shares at a lower price making their money on the difference) covering their positions after Apple announced solid numbers for the quarter and institutions taking a new look at Apple with the release of high-quality numbers, especially following release of the new iMac.
Prior to the AG Edwards and Salomon Smith Barney upgrades, of the 17 brokerages that reported covering Apple, 6 had a buy rating and 11 had a hold rating. I expect other brokerage firms to upgrade their view of Apple in the coming weeks. Lack of institutional interest in Apple has been a problem for the company over the years. The more brokerages that move Apple to even a light accumulate rating from a hold rating will increase demand for the shares and provide important support for the share price.
Additionally, I believe mutual funds and other major investment institutions will look to add Apple to their portfolios now that the company has begun a new growth phase and is on track to increase sales and (ultimately) earnings.
As has been mentioned by others, the original iMac was introduced in May 1998 and became available for sale in August of that year. Owners of the original iMac are ready for a new computer, as are the millions of Mac users who still own pre-G3 machines.
Even without appreciable gains in overall market share, the new iMac will be a success for Apple. Imagine the opportunity for additional growth in sales and earnings as the new Apple Stores provide an environment for non-Mac owners to explore and purchase Apple products.
According to Apple, 40% of buyers at the new Apple Stores during the calendar 4th quarter were new to the platform. The cost of opening new stores will gradually diminish as Apple slows the pace of new store openings. I do expect the Apple Stores to become profitable by the end of this calendar year, perhaps sooner depending on the economy and the rate of new and/or refreshed product announcements from Apple.
<font size=-1>[ This Message was edited by: DawnTreader on 2002-01-17 21:45 ]</font>
Apple closed on Friday (1/18) at 22.17, down slightly on the day. Over 6 million shares changed hands, handily exceeding the average daily volume.
A few analysts who track Apple have commented that they will take a wait and see approach to the company, though they are positive about the fiscal 4th quarter results.
There is concern among many analysts that Apple is a one-product company. Early success of the new iMac will influence the decision of analysts to eventually rate the company as a buy
Apple closed down $.35 today (1/22) at $21.82. Above-average volume of about 5.84 million shares. No major news today concerning Apple, but above-average daily volume continues.
Apple closed signinficantly higher today (1/23) at $23.02, up $1.20 on the day. Volume was nearly 8 million shares. Apple has received positive press lately, including an impressive story in Forbes. This is the highest daily close for Apple since the pre-MacWorld run up in early January.
Apple closed up $.19 today (1/24) to close at $23.21. Over 6.1 million shares changhed hands. Apple is now trading above its 50, 100 and 200 day moving averages
There appears to be strong buyer support for the stock at this time.
Apple closed higher again today (1/25), up $.04 to close at $23.25. Apple’s market value is again above $8 billion.
In seemingly unrelated news, IBM announced its first Linux-only mainframe. How long before analysts, journalists and investors begin to see the enhanced value of Apple’s OS X technology? It’s a UNIX-based operating system built on an Open Source core. It combines the power of UNIX with the elegance of an Apple GUI design.
Apple closed up $.02 today (1/28) to close at $23.27. Earlier in the day Apple announced the release of speed-bumped G4 minitowers, including a dual 1 GHz machine. Apple also announced the first shipment of the new iMacs.
At today’s closing price, Apple has a reported price-earnings multiple(P/E) of 40.09 compared to Dell’s reported P/E of 64.64.