“Apple’s second quarter is expected to be weak compared with its December quarter, as sales of iPods and other consumer electronics typically stall after the holidays,” The Associated Press reports. “In January the company projected earnings of about 38 cents per share, including 4 cents per share for stock option expenses, on $4.3 billion in revenue. Analysts polled by Thomson Financial expect the company to earn, on average, 43 cents per share on $4.54 billion in revenue.”
“Merrill Lynch analyst Richard Farmer, who recently lowered his 2006 iPod sales estimates to 47 million from 53 million, suggested that the company’s “Boot Camp” roll out has been overestimated by the investment community. Still, Farmer believes the introduction of “Boot Camp” could result in an “incremental” increase in Macintosh computer sales in 2007. Farmer has a ‘Neutral’ rating on Apple,” AP reports. “American Technology Research analyst Shaw Wu, who has a ‘Buy’ rating on the stock, suspects the company will deliver a “solid” March quarter, and expects the company to issue fairly conservative guidance.”
Full article here.
MacDailyNews Take: How good of a prognosticator are you? How many Mac units for the quarter? How many iPod units? Total revenue? Please post your predictions below and we’ll check back after Wednesday’s earning release. Apple’s record-setting Q1 2006 (holiday quarter ended December 31, 2005) saw 1,254,000 Mac units shipped, 14,043,000 iPods, and revenue of $5.75 billion. At the release of Q1 2006 earnings, Apple stated second quarter 2006 expectations of $4.3 billion in revenue, which some analysts saw as too conservative.
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Apple FY 06 Second Quarter Results Conference Call this Wednesday – April 17, 2006
Apple reports Q1 2006 earnings results: record revenue and earnings – January 18, 2006
Analysts question Apple’s conservative guidance for company’s second fiscal quarter – January 18, 2006