“Apple Computer’s revenue shortfall and rising oil prices pulled on U.S. stock market futures in early trade Wednesday,” The Associated Press reports in an article headlined “Stocks Set to Open Down on Apple Shortfall.”
“Apple Computer quadrupled quarterly profit on sales of iPod music players and Macintosh computers, but revenue missed consensus estimates.”
Yesterday, Apple posted revenue of $3.68 billion and a net quarterly profit of $430 million, or $.50 per diluted share. These results compare to revenue of $2.35 billion and a net profit of $106 million, or $.13 per diluted share, in the year-ago quarter. For fiscal 2005, the Company generated revenue of $13.93 billion and a net profit of $1.335 billion, reflecting annual growth of 68 percent and 384 percent, respectively, and representing the highest annual revenue and net profit in the Company’s history.
Full article here.
Apple had their best quarter and best year in the Company’s history, but because it didn’t meet a consensus figure invented by analysts who haven’t been right about forecasting Apple’s earnings for years, The Associated Press calls Apple’s report a “shortfall.” Only where The Street meets The Mainstream Media. Apple easily exceeded their own guidance. Apple’s quarterly profit quadrupled! This, friends, is how Wall Street works and a valuable gift for those who missed out on Apple the last time around. This artificial hysteria presents quite a tempting buying opportunity, if you’re so inclined. We think it’ll be short-lived.
Remember, the number of iPods that consumers bought in July, August, and September will pale in comparison to the number that will be purchased as gifts in the current holiday quarter. And the steady increase in Mac’s overall unit sales momentum has to be extremely encouraging to Apple.
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Apple Q4 05 earnings report: best quarter & best year in company history – October 11, 2005