Apple expected to post higher profit, 27% sales growth

“Apple Computer Inc. is expected to post another quarter of double-digit profit and revenue growth driven by iPod sales when it reports results for its fiscal fourth period on Wednesday, Oct. 18,” Rex Crum reports for MarketWatch.

Crum reports, Analysts surveyed by Thomson First Call estimate Apple will earn 50 cents a share for the period, which just ended, up from 38 cents a share a year ago. Revenue is expected to rise 27% to $4.67 billion, up from $3.69 billion, on strong demand for the iPod, its market-leading digital music player, and growth in sales of Apple’s laptop and desktop personal computers.”

Crum reports, “It will be the first Apple financial report since the company said on Oct. 4 that it will restate some past results to book charges because an internal probe found that employee stock option grants were not properly accounted for on 15 occasions between 1997 and January 2002. Apple didn’t specify in which period it will take the charges nor how large they will be.”

Crum reports, “Shaw Wu, an analyst with American Technology Research, said he anticipates Apple will report strong iPod sales fueled by the redesigned iPod Nano. Wu also expects Apple’s Macintosh sales to show a 6% increase over their fiscal third-quarter figures because of strength in the company’s MacBook laptop product line. Looking ahead to December, Wu said that he expects Apple’s forecast for the current quarter to be conservative, in spite of what is typically the company’s strongest business period. Wu said Apple will likely set ‘reasonable’ expectations that it can either meet or exceed for the period, which includes the holiday shopping season.”

Full article here.

MacDailyNews Note: Apple will announce Q4 earnings on October 18th after market close.

Apple’s 2006 earnings and unit sales information through Q3:
• Q1 (ended 12/31/05): revenue of $5.75 billion, net quarterly profit of $565 million, 1.254 million Macs, 14.043 million iPods
• Q2 (ended 04/01/06): revenue of $4.36 billion, net quarterly profit of $410 million, 1.112 million Macs, 08.526 million iPods
• Q3 (ended 07/01/06): revenue of $4.37 billion, net quarterly profit of $472 million, 1.327 million Macs, 08.111 million iPods

Related articles:
Analysts expect upbeat Q4 report from Apple on October 18th – October 12, 2006
UBS analyst sees strong Mac demand – October 12, 2006
Piper Jaffray analyst sees AAPL upside due to strong Mac sales – October 12, 2006
Apple to announce sales of 1.64 million Macs for quarter? – October 10, 2006
Investrend expects Apple to report earnings of $6.72 billion – October 10, 2006
Analyst predicts Apple to sell 1.4 million Macs this quarter – October 09, 2006
Apple to announce Q4 earnings October 18th – October 03, 2006

14 Comments

  1. I visit a Comp usa store about twice a week. One of the salesmen told me that Apple computer sales are 10% of their entire store. the mac section always has three or four people looking at Macs, whereas the PC side may have one or two people looking. There is no question in my mind that Apple is gaining very fast, much faster than the analyists may realize. In the streeets, in the trenches, people are “down” with Apple.

  2. “Wu said Apple will likely set ‘reasonable’ expectations that it can either meet or exceed for the period, which includes the holiday shopping season.””

    This Wu guy must be some precognitive genius.

    What company wouldn’t do this? I mean, isn’t it what they are supposed to do??

    I can see it- The boardroom of come multinational corporation, the CEO stands up and states-
    “Lets forecast a number we have no chance of meeting and really piss off our investors next Qtr.”

    Brilliant!

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