“Apple Computer reports after the close on Wednesday, Jan. 18. Following Steve Jobs’ comments at the Macworld Expo last week, estimates have moved up sharply. Jobs guided to $5.7 billion in revenue for the December quarter, and analysts who have adjusted their estimates are tightly clustered around this figure. There was no specific guidance on EPS at Macworld, so these estimates are more varied. The range is from 59 cents to 69 cents per share, up about 10 cents from before Jobs’ speech. Estimates have risen sharply for fiscal 2006 as well. The range of EPS estimates is now $1.95 to $2.53, up about 30 cents at the midpoint. Revenue estimates for 2006 range from $19.4 billion to $22.3 billion, up $2 billion to $3 billion,” Steve Birenberg reports for TheStreet.com.
Birenberg writes, “I think the big question mark for the December quarter is, how good were margins on the incremental $700 million in revenue AAPL booked relative to prior estimates?”
Full article here.
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Related article:
Reminder: Apple to webcast Q1 06 Quarterly Earnings Call today – January 18, 2006
I would have thought since “Creative” won C|net “Best of Show” with their latest iPod rip, that Creative would be the bell weather for tech.
Confusing.
Waiting, rumour, speculation, waiting, watching….
Why the F-CK is AAPL tanking so hard today????
Don’t we already know earnings will be lower than expected? A one-time bad quarter (or two) before the Intel thing takes off into the sky?
I know the osborn effect didn’t happen for the last half year, but it DID happen over the holiday season. Didn’t steve jobs give mac sales figures last week that show that? And Macs make more than iPods still don’t they?
Plus iPods have been selling less than estimates too, haven’t they? (Which I know is silly since they still blow away sales of anything else, and have still been increasing fast.)
So don’t freak. Hang onto your stock and the Mac sales slump will end while the iPod keeps snowballing. Today tells us little unless you are a short-term market gambler.
@ Pissed Off
Everything is tanking today.
Carry over from Japan.
Not just AAPL. You want investors to be logical? Ain’t gonna happen. Wait it out.
Why is AAPL tanking? Because stock borkers, er, brokers are lemmings. Because they behave as a pack, they treat everyone else as if they are a pack as well and can’t see the trees for the forest.
MW: Don’t look now, but there’s a cliff ahead.
Apple is developing an economy of scale, especially with flash memory. I would expect the margins to be up.
Hey, Pissed Off,
Don’t be so tunnel-visioned. It’s not just AAPL. It’s the whole tech sector. Look at Google and Intel.
MW: comes. With great power comes great responsiblity.
finelinebob,
the brokers aren’t the idiots. the sheep lemming investors are the idiots. the brokers are exploiting the ignorant in the market…prolly ignorants like…ahem…you…
lol
Nah not ignorants like me — I don’t plan on looking at the stock prices of what’s in my portfolio for at least another 20 years.
MW: Hail! Hail! to Michigan, the leaders and best!
Every time a Quarterly report comes around Apple shares drop, they will also drop in after hours trading and drop tomorrow. Look back at the stock history this pattern has been around for a long time.
BTW, it doesn’t matter if a stock goes up or down, you can go “long” on the ones you think are going up and “short” those you think are going down.
Either way, you make money. In the short term, if you think the “Osborn Effect” (unproven by the way) will stall Apple, then short them or buy “puts”. If you believe it’s up, up and away, then buy “calls” and go long.
Cheers!
It is a buying opportunity.
My take on the Intel slide is that people are delaying buying new Wintel machines until Vista ships. This is actually good for Apple. They should be able to get more product from Intel.
As far as the Japanese market drop, it’s all about a corrupt company — sort of a Japanese Enron. Don’t sweat it.
Thanks for the heads-up everyone. Wasn’t aware that everything was hurting on Wall Street today.