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 Outlook is Conservative

Analyst: Apple Outlook is Conservative

by , 10:50 AM EST, January 3rd, 2007

Investors may be underestimating Apple Computer's value in 2007 in contrast to 2006, according to American Technology Research analyst Shaw Wu. He commented "As we look out over the next 6 to 12 months, consensus estimates, in our view, look reasonable, and will likely prove conservative, a very different scenario than in 2006. "

He added "One of our key concerns on Apple in 2006 was that we believed published consensus estimates were too aggressive (particularly revenue) and no where near Apple's guidance, but more importantly, didn't make any logical (financial or business) sense."

Mr. Wu feels that Apple's estimates have finally reset, which will give the company room to surprise investors on the upside. The company's expected product line up for 2007, which includes Mac OS X 10.5, the iTV home theater appliance, refreshed iPod models, new Macs, and possibly a cell phone product, should offer strong momentum throughout the year.

The December quarter will likely show US$6.4 billion in revenue and $0.79 in EPS along with 15.5 million iPods sold.

For fiscal 2007, Mr. Wu is estimating Apple will post $23 billion in revenue and $2.85 EPS. Looking forward to 2008, he predicts Apple will report $28.1 billion in revenue and $3.50 EPS. That estimate is based on 23 percent growth in Mac sales to 8.8 million units, 9 percent growth in iPod sales to 47.3 million units, and an additional $326 million in sales from cell phone products.

Mr. Wu is maintaining his "Buy" rating for Apple, and a target price of $99. Apple stock is currently trading at $85.74, up 0.90 (1.06%).


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 TMO Headlines - Updated February 26th

Sun, 1:15 AM
Get Free Bitcoins from 11 Faucets That (Still) Pay
Sat, 9:42 PM
How to Turn Siri into a Metronome (Video)
Fri, 10:17 PM
Stanford's 'Developing iOS 10 Apps with Swift' free on iTunes U
Fri, 8:20 PM
iPhone Screen Repairs By Third Parties Now Get Some Warranty Coverage
Fri, 7:56 PM
Amazon Goes with First Amendment to Protect Alexa Recordings
Fri, 6:28 PM
An App that Automatically Notifies People of Your Trip Progress
Fri, 5:51 PM
Apple and Silicon Valley Struggle to Navigate Trump's Waters
Fri, 5:43 PM
The Thinking Behind a Female Voice for Siri
Fri, 5:13 PM
Enjoy Outdoors Activities With These Top 5 iPhone Apps
Fri, 2:01 PM
Amazon's Echo First Amendment Rights Fight - TMO Daily Observations 2017-02-24
Fri, 10:01 AM
iTunes Remote App gets Two-Factor Authentication Support
Fri, 9:00 AM
Disk Drill PRO 3 for Mac for $34.99
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!