Goldman Sachs raises estimates on Apple, expects strong first-quarter earnings

Goldman Sachs today raised estimates on Apple Computer, citing expectations for strong fiscal first-quarter earnings, stronger iPod shipments, and strength in Apple’s other consumer offerings coupled with higher traffic and close rates at Apple’s retail stores.

“While we remain extremely positive about Apple’s fundamentals and continue to look for entry points, we think that investors would be better served to wait until after Macworld and Apple’s earnings when the stock’s 2005 outlook can be judged in a more settled light,” the firm noted.

Goldman raised the estimated iPod shipments for first quarter to 4.5 million from 4 million while noting that the iPod will “again account for the vast majority of the upside.”

The firm raised the fiscal 2005 earnings estimate to $1.62 per share from $1.49, and raised the fiscal 2006 estimate to $2.02 from $1.84 and also raised the first-quarter estimate to earnings of 51 cents per share on revenue of $3.197 billion, from earnings of 46 cents per share on revenue of $3.064 billion. The firm maintained its “in line” rating on Apple.


  1. I rather hope they’re wrong about iPod presenting the majority of the upside. I think Tiger and any newly announced Mac products will give Mac OS X new legs. But that won’t be reflected in this quarter, so maybe they’re right.

  2. Earnings of 1.62/share instead of the last reported $0.709/share should bring the P/E ratio down to earth and make all the naysayers crazy. That makes the current stock price low. If you are taking notes- buy some Apple stock.

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