May 24, 2013 - 04:00 PM EDT — AAPL: 445.15 (+3.01, +0.68%) | NASDAQ: 3498.965 (+33.722, +0.97%)
“It seems that almost daily now there’s yet another worthless article that incompetently tries to forecast Apple’s fiscal Q1 earnings by taking a look at Apple’s EPS guidance,” Andy M. Zaky writes for Bullish Cross. “The problem with that approach is that Apple’s EPS guidance is entirely useless. Understanding how to properly use Apple’s guidance to forecast earnings will get you to within 5% margin of error. Yet, to get there you have to use the right methodology. Trying to extrapolate anything from EPS guidance simply isn’t it.”
Zaky explains, “Our objective is thus two fold. First, we going to demonstrate how one can very accurately put together one of the top income statement forecasts that will beat every single Wall Street analyst simply by using nothing more than Apple’s guidance. Secondly, we’re going to show why the method of doing so requires one to simply ignore Apple’s EPS guidance as being random, meaningless and distracting.”
Read more in the full article – recommended – here.
[Thanks to MacDailyNews Reader "Fred Mertz" for the heads up.]