Analyst: Apple’s second-quarter profit could fall short of high end Wall Street estimates

“Investors in Apple Computer Inc. expecting a blow-out quarter could be disappointed, a Banc of America analyst said, noting that its second-quarter profit could fall short of the high end of Wall Street’s estimates. Analyst Keith Bachman said the company’s profit before one-time items could reach as high as 28 cents a share, compared with the Reuters Estimates average of 24 cents a share,” Reuters reports.

“Bachman projects a profit of 22 cents a share on $3.0 billion in revenue, assuming sales of 4.6 million iPods. But he said that if iPod sales reach 5.7 million, ‘Apple could deliver 4 to 5 cents higher than our published estimate. We believe that investors looking for more potential upside than this will be disappointed.’ The high end of the Reuters Estimates range is 30 cents a share. The average revenue estimate is $3.19 billion, with a high end of $3.5 billion,” Reuters reports.

Full article here.

MacDailyNews Take: Newsflash: investors who expect too much could be disappointed, but probably nowhere near the level of disappointment the guy on a plane with a Windows XP Dell laptop will feel when seated next to someone running Mac OS X Tiger on an Apple PowerBook.

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All eyes on Cupertino as Apple releases earnings today (conference call webcast link included) – April 13, 2005

17 Comments

  1. and apple may announce that they are going to stop making iPods and start making cookies!

    …how bout we all just shut up until it happens and then we’ll see and no-one will look like a fool when it’s all over.

  2. My God, these analysts are the biggest f*cking idiots on the planet. Apple will announce a blow-out quarter in terms of sales for sure. Whether these idiots are “disappointed” or not shouldn’t mean jack sh*t to anybody with a brain. I’m sure Steve Jobs is laughing all the way to the bank for sure…

  3. Lets see, if I am an analyst, I would figure there is 50% chance Apple will exceed expectation and 50% chance Apple will disappoint investor. Now, Pipper has already claimed Apple will exceed. If I guess same as them, I will be just another analyst, no one will notice me. If I guess other way and if Apple do exceed expectation, then no one will remember, but if Apple disappoints, then I will be the star analyst of the quarter. So, it really does not matter which way I think Apple’s results will be. I am better off making a bold statement Apple will diappoint. I will either be forgotten, which case I get to try again next quarter, or I will be a great analyst for the quarter.

  4. The thing that amazes me about these ‘experts’ and ‘analysts’ is how consistently they have lagged the growth of Apple as a group. Late to the party and ready to bail on the slightest sign of less than stellar news. I thought the whole idea of retaining people like this was to get forward-looking information– not yesterday’s news.

  5. mdn: “………but probably nowhere near the level of disappointment the guy on a plane with a Windows XP Dell laptop will feel when seated next to someone running Mac OS X Tiger on an Apple PowerBook.”

    yeah, sure.

  6. “Apple today announced financial results for its fiscal 2005 second quarter ended March 26, 2005. For the quarter, the Company posted a net profit of $290 million, or $.34 per diluted share. These results compare to a net profit of $46 million, or $.06 per diluted share, in the year-ago quarter. Revenue for the quarter was $3.24 billion, up 70 percent from the year-ago quarter. Gross margin was 29.8 percent, up from 27.8 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter’s revenue.”

    0.34 cents buddy. That’s a huge upside! 29.8 percent gross margin, the best in the industry!

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