May 22, 2015 - 05:15 PM EDT — AAPL: 132.54 (+1.15, +0.88%) | NASDAQ: 5089.36 (-1.43, -0.03%)
“Mr. Market has a warped sense of what is disappointing. When Apple (AAPL) released earnings recently, they were dubbed disappointing and led many to question if the company was going to make a habit of missing estimates,” Chad Henage writes for The Motley Fool. “While it’s true that Apple is running into tough comparisons, long-term investors are actually getting exactly what analysts have been predicting. For the last few years analysts have pegged Apple’s EPS growth rate at around 20%; but when the company delivers on this expectation, investors are disappointed?”
“The key to understanding Apple’s earnings is knowing that consumers behave in a certain way,” Henage writes. “Those who understand the cycle of Apple’s products can benefit from the drop in the stock when the company ‘disappoints,’ and this is why I believe Apple will easily beat estimates next quarter.”
Read more in the full article here.