Analyst: Apple’s holiday-quarter Mac sales were solid

“Apple Inc. on Wednesday reported its first-quarter profit soared 78%, far surpassing Wall Street expectations, as sales of its iPod media players rocketed past even the most optimistic of analysts’ forecasts,” Rex Crum reports for MarketWatch. “Apple posted a profit of $1 billion, or $1.14 a share, for the period ended Dec. 30, up from $565 million, or 65 cents, a year ago. Revenue rose 24.5% to $7.1 billion from $5.75 billion. The results beat the estimates of analysts surveyed by Thomson First Call, who expected Apple to earn 78 cents a share on revenue of $6.42 billion.”

“Leading the charge for Apple was its line of iPods, with the company shipping 21 million of the market-leading devices during the quarter, a 50% jump from a year ago. Sales of the device accounted for $3.43 billion of the company’s revenue, or nearly half the total,” Crum reports. “Macintosh computer sales also surged, rising 40% to $2.4 billion, while Mac shipments rose 28% to 1.61 million units, more than double the growth of the overall PC market. The Mac results were a slightly below many analysts forecasts, as several had expected Apple to sell between 1.75 million and 1.8 million Macs during the quarter.”

Crum reports, “J.P. Morgan analyst Bill Shope downgraded the stock to neutral from overweight given that Mac sales fell short of his estimate. ‘After a significant run in the stock, our bullish thesis was based primarily on expectations for significant upside in Mac units,’ Shope said.”

Crum reports, “However, Munster of Piper Jaffray, said the holiday-quarter Mac sales needed to be taken into context, and were actually solid because they remained almost in line with Apple’s September quarter results, which is when Apple sees strong back-to-school PC sales. ‘People give iPods for Christmas, not computers,’ Munster said.”

“For its fiscal second-quarter, Apple estimates it will earn 54 cents to 56 cents a share on revenue in a range of $4.8 billion to $4.9 billion. That’s below the average forecast of Wall Street analysts, who expected Apple to earn 60 cents a share on $5.22 billion in revenue,” Crum reports. “Piper Jaffray’s Munster said the forecast shouldn’t come as a surprise, because Apple typically gives a second-quarter outlook below consensus estimates, which gives the company an opportunity to top its own forecasts when it delivers its results.”

Full article here.

[Thanks to MacDailyNews Reader “Kevin P.” for the heads up.]

Related articles:
Slew of analysts up price targets on Apple Inc. – January 18, 2007
Apple Financial Results Conference Call Q1-2007 Live Notes – January 17, 2007
Apple smashes Street, posts revenue of $7.1 billion and record net quarterly profit of $1 billion – January 17, 2007

28 Comments

  1. Just as expected. Mac sales are up 40%, more than double the growth of the overall PC market, but below many analysts forecasts.

    Apple just can win with these idiots in Wallstreet.

    If there ever was a reason to have hunting season on lawyers and analysts…..

  2. Failing to address the question so boldly raised by Steve declaring “we’re done with the Mac” and then compounding the insult by dropping “Computer” from our company’s name is causing much anxiety and the stock is getting battered.

    Drop in Mac sales and dreary forecast for the rest of the year just makes things even worse.

    If you are going to hold on to your stock, you are betting your hard earned money on a really glitzy cell phone nobody has ever tried to operate. Good luck.

  3. “If there ever was a reason to have hunting season on lawyers and analysts…..”

    Don’t get mad, get rich. Most of us who follow Apple know that the best is yet to come in reagrds to Mac sales. Apple still has a lot of tricks left up its sleeve.

    I for one wouldnt mind seeing a little slide as a buy in opportunity.

  4. “Consequences”
    “Failing to address the question so boldly raised by Steve declaring “we’re done with the Mac” and then compounding the insult…”
    ——-

    If you listen to what he actually said in the Keynote.
    4 minutes 15 seconds into it, this is the exact statement,
    “This is all we’re going to talk about the Mac today.”

    Meaning next topic for the Keynote.

  5. I know that a lot of the people who didn’t buy Macs in the Holiday quarter were holding off for the MacWorld announcements, hoping that a newer better and/or less expensive version of the Mac they were planning to buy would be unveiled.

    When that didn’t happen many have and will proceed with their Mac purchases diring the month of January. I personally know of four people who follow this scenario and I’m sure there are thousands more.

  6. Mac sales are going to increase markedly as soon as three things transpire:

    1. Leopard is released on new Macs’ hard drives so users don’t have to pay an additional cost to upgrade.

    2. iLife ’07 is released on new Macs’ hard drives so users, again, don’t have to pay an additional cost to upgrade.

    3. Adobe Creative Suite 3 ships.

    I, for one, will buy a new MBPro as soon as the above events occur.

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