Apple is set to report its quarterly earnings on Tuesday April 24 after market close. Apple stock has been seesawing during the last few days in anticipation of the quarterly earnings, suggesting an overly anxious sentiment. If you listen to some of the CNBC announcers, they are merely sharing information based on how the stock is moving, rather than the real fundamentals. There are many buy-side and sell-side analysts who have made their bold projections about Apple stock. Some believe it could be the first $1 trillion company by market cap, and that Apple stock could hit $1,000. How can an individual investor make sense from all this?
What we do know
Apple's CFO Peter Oppenheimer projected this in the January earnings press release: “Looking ahead to the second fiscal quarter of 2012, which will span 13 weeks, we expect revenue of about $32.5 billion and we expect diluted earnings per share of about $8.50.”
Wait a moment!
Global Momentum
Apple is on a high growth drive. There is an insatiable demand for Apple products worldwide. Apple international sales are about 60% of the total sales. People around the world love to buy and use Apple products. Buying an Apple product overseas is akin to buying a really cool, "Made in America" product which the owner is very proud to own and show off. Is Apple becoming synonymous to buying an American product? Perhaps! Further, since Apple integrates the hardware, software, content and shopping experience, the customers are really happy to own a physical, tangible product that generates a sort of sensual response. There is no stopping the Apple juggernaut in 2012. The world economies are improving, many countries are just waking up to Apple, and people find an iPad for $399 or $499 quite affordable.
My prediction
Last quarter, a holiday quarter that had 14 weeks, Apple sold 37.04 million iPhones, 15.43 million iPads, 5.2 million Macs and 15.4 million iPods. There is an outside 10% chance that Apple may repeat that feat based on the huge demand worldwide, and growing demand here in the U.S. When I visited New York last week, I went to the Apple store on Fifth Avenue. I was amazed to see the massive crowd on a regular week day afternoon. There was standing room only! And this is a huge store. Even on a conservative basis, I think Apple can sell over 35 million iPhones, 12 million iPads, 4.5 million Macs and 10 million iPods - totaling over $42 billion in sales and at least $11 in earnings. There you have it! Apple could deliver a whopping $42 billion in sales. That would be amazing indeed!
If Apple indeed posts such a big quarter, Apple stock could fly to new heights! Can it go to $700 by May 7?
Apple (NASDAQ: AAPL) is a top twenty innovator of the Innovation Index.
Learn how Apple innovates through this Apple Innovation Strategy eBook. How Steve Jobs made Apple the best innovator in the world!
I have been using the original iPad since 2010 for my business, and recently purchased the new iPad. Learn more on how you can use the iPad for your small business.
What we do know
Apple's CFO Peter Oppenheimer projected this in the January earnings press release: “Looking ahead to the second fiscal quarter of 2012, which will span 13 weeks, we expect revenue of about $32.5 billion and we expect diluted earnings per share of about $8.50.”
Wait a moment!
Back in October earnings press release, Oppenheimer projected: "we expect revenue of about $37 billion and we expect diluted earnings per share of about $9.30"
Apple then posted record quarterly revenue of $46.33 billion and record quarterly net profit of $13.06 billion, or $13.87 per diluted share, easily beating their own sales estimates by over $9 billion and earnings by over $4.50.Apple is thus low-balling their current quarterly sales and earnings in a big way. But we knew that!!
Global Momentum
Apple is on a high growth drive. There is an insatiable demand for Apple products worldwide. Apple international sales are about 60% of the total sales. People around the world love to buy and use Apple products. Buying an Apple product overseas is akin to buying a really cool, "Made in America" product which the owner is very proud to own and show off. Is Apple becoming synonymous to buying an American product? Perhaps! Further, since Apple integrates the hardware, software, content and shopping experience, the customers are really happy to own a physical, tangible product that generates a sort of sensual response. There is no stopping the Apple juggernaut in 2012. The world economies are improving, many countries are just waking up to Apple, and people find an iPad for $399 or $499 quite affordable.
My prediction
Last quarter, a holiday quarter that had 14 weeks, Apple sold 37.04 million iPhones, 15.43 million iPads, 5.2 million Macs and 15.4 million iPods. There is an outside 10% chance that Apple may repeat that feat based on the huge demand worldwide, and growing demand here in the U.S. When I visited New York last week, I went to the Apple store on Fifth Avenue. I was amazed to see the massive crowd on a regular week day afternoon. There was standing room only! And this is a huge store. Even on a conservative basis, I think Apple can sell over 35 million iPhones, 12 million iPads, 4.5 million Macs and 10 million iPods - totaling over $42 billion in sales and at least $11 in earnings. There you have it! Apple could deliver a whopping $42 billion in sales. That would be amazing indeed!
If Apple indeed posts such a big quarter, Apple stock could fly to new heights! Can it go to $700 by May 7?
Apple (NASDAQ: AAPL) is a top twenty innovator of the Innovation Index.
Learn how Apple innovates through this Apple Innovation Strategy eBook. How Steve Jobs made Apple the best innovator in the world!
I have been using the original iPad since 2010 for my business, and recently purchased the new iPad. Learn more on how you can use the iPad for your small business.