“Apple’s second-quarter earnings topped Wall Street’s estimates by 10 cents a share, and the company offered an earnings outlook that was better than expected. But investors weren’t impressed, selling off the stock after hours,” Troy Wolverton reports for TheStreet.com. “Indeed, despite the strong results, analysts on a conference call Wednesday evening found a number of items to quibble with. For instance, the company’s third-quarter guidance — while above the Street’s estimates — implies that sales will be flat compared with the second quarter and earnings will decline, several analysts noted. Some also observed that Apple’s share count ballooned 13% in the quarter, diluting earnings.”
“The expanded share count had to do with stock options exercises in the quarter, CFO Peter Oppenheimer explained on the call. In terms of the company’s guidance, it reflects Apple’s normal seasonality and still would represent a 61% growth rate over the year-ago quarter, he said,” Wolverton reports.
“Even if you factor in the options issue and the flat guidance, Apple’s results were ‘incredible,’ says Scott Rothbort, president of LakeView Asset Management and a contributor to TheStreet.com’s sister Web site Street Insight. Analysts are going to have to raise their earnings estimates, which means that with the level of cash the company now has, its shares are undervalued, says Rothbort, who is long Apple. Rothbort says the after-hours selloff was ‘perplexing,'” Wolverton reports. “‘The stock should not be where it is now,’ he says. ‘This is going to be an easy $50 stock. No doubt about it. The only question is whether [the market] allows it to get there.'”
Full article here.
Please-o-please-o-please-o…
I mean. Yeah, whatever.
What does this all mean…….
” Only Apple could beat “The Street” by a dime and see it’s shares fall. If I would have listened to most of the ‘experts’ and analysts, I would not have bought Apple Stock a couple of years back with tax return money & would have missed the wild ride up. The vast majority of guidance lagged the stock price most of the way up. If I would have listened later on, I would have sold out too cheaply. I have no doubt that if Apple had simply met expectations the stock would have gotten hammered by these same clueless gurus. Maybe it’s time for the ‘experts’ to go back to school or find another line of work.”
enough said
Can’t wait to hear from our Windows stooges about how crappy Apple’s profit earning were. Perhaps they will compare them to Microsh#ts?
Anybody buying shares tomorrow? Or today after hours?
What’s a battle?
This is a great buying opportunity…how fun, and profitable…
I think sometimes people like the anal-yst are never happy no matter how good the numbers come out. Its the same thing as people who have a lot of money want more money. (worldcom and enron excutives). I think its part of human nature to want more and more money. I am not sure if the facts are right for the next sentence but if they are right then Apple had a very good quarter. The funny thing is that apple beats the last quarter which was the X-mas buying quarter. Because Apple keeps beating the previosu quarter these anal-yst keep thinking that the good times will roll. It is very hard to beat x-mas season, which these anal-yst don’t get. People that usually won’t buy something expense would consider it then because it is X-mas. So Apple beating numbers last quarter that shows that Apple is doing very well even after christmas season. I can’t wait to the quarter results after the 2005 x-mas season which would be reported in jan 2006. Maybe 4billion in revenue.
Another factor was that the basically all the tech stocks were down today. Also since yesterday everyone had a decent uptick in stocks and maybe decided to sell it today to cash out a little profit.
I think tomorrow people will go back to buying Apple stock.
Quote ” I think its part of human nature to want more and more money.”
We can call that a bad disease!
stock boys had to cover their shorts, so they sold.
they will buy today….
…unless someone puts lots of weight on the fact that powermac sales took a dive and low revenue minimac could be eating into i/emac sales.
Apple should try a new sale in the fall: ipod + minimac back to school combo at a special price. (maybe a customized version where both are same color or…)
Just curious, how many of you own the stock vs. call options?
These analysts are just trying to bring down the stock price so they can buy more before Tiger hits the street!!!
Even though he says stuff I like to hear, he’s no better..
“‘This is going to be an easy $50 stock. No doubt about it. The only question is whether [the market] allows it to get there.'”
Translation: It may reach 50, or it may not. Great prediction.
Many analysts, especially ones who are non-Mac users, are ticked off because Apple, quarter after quarter, makes them look stupid. What will the Win$in half of Motley Fool say now, I wonder?
Anyone who has any clue of both platforms, both hardware and software, can see the obvious difference between them. and can see that Apple has nowhere to go but up. Analysts just don’t do their homework or there wouldn’t be a 10 cent difference in their expectations and the actual results. And as always, Apple’s gonna bid low on their expectations.
I think Powerbook sales were good as compared to iBook sales, and considering the fact that everyone is waiting for a next generation PB, G5 or not. I am disappointed in PowerMac sales and expect something dramatic in the near future to boost this area. But a million macs total, who can really complain?!!
We havnt upgraded our PowerMacs in 3 years, just not enough revenue anymore for software upgrade (Way too high IMHO) and top end hardware. We did get some eMacs and ibooks last year though to get evreyone on OS X. Im still seeing another year with my Dual 1.4 MDD
It was an incredibly good quarter anyway you slice it. To me the key was the unit sales of iPods went up from the holday quarter and the holiday quarter was an extraordinary success.
Also anyone who doubts the “halo effect” has only to see Apple’s CPU shipments up by 43% year over year. This is over 4 times the current industry growth rate, and they’re actually making profits on these sales unlike much of the Winblows based manufacturers who barely break even.
Finally one of the analysts asked the Apple Sales VP on the conference call yesterday “if Apple was going to be able to continue bringing out great product”. His response was excellent “that innovation was in Apple’s DNA”. This is really the key driver to the value in Apple’s stock. I for one wouldn’t bet against them coming up with some mind-blowingly good products in categories we can barely imagine now.
I know is not a lot but I bought my first 2k worth of it today