Anaylst expects Apple to beat Wall Street’s March quarter expectations

Apple Store“Apple’s second quarter Mac and iPod sales are likely to come in just above Wall Street’s expectations, helping to drive slight upside to overall consensus revenue and per-share earnings estimates, according one investment research firm,” Slash Lane reports for AppleInsider.

“Following Apple’s announcement earlier this month that it had sold its 100 millionth iPod, PiperJaffray analyst Gene Munster performed product sell-through checks with 20 Apple resellers and found that 85 percent were expecting a slight quarter-to-quarter decline in Mac sales of about 5 to 10 percent,” Lane reports.

“‘The Street is expecting Mac units to fall 10 percent quarter-to-quarter, so we may see slight upside to Street expectations of 1.45m Macs,’ the analyst told clients in a research note Monday. ‘The other 15 percent of Mac resellers expect Mac units to be flat quarter-to-quarter,'” Lane reports.

“Apple TV, which did not ship until March 20th — 10 days before quarter’s end — is not expected to have a material impact on the quarter. However, Munster said his checks indicate that Apple did manage to ship each and every one of its pre-orders for the $299 streaming media device,” Lane reports.

“In pushing Apple TV to market, Apple is leveraging its iTunes user base of approximately 110 million users. Munster believes that addressable market will expand as the iTunes user base grows, and as more video content is added to the store. He’s currently modeling for sales of 2 million Apple TV units through calendar year 2007, where every additional 500,000 units will add 2 cents to the company’s earnings,” Lane reports.

Full article here.

MacDailyNews Note: Analysts surveyed by Thomson Financial estimate Apple (AAPL) to earn 64 cents a share on $5.17 billion in revenue for its Q2 07 quarter. Apple previously forecast a profit of between 54- to 56-cents per share, and revenue of $4.8 to $4.9 billion. Apple Q2 06 earnings info (ended 4/1/06): revenue of $4.36 billion, net quarterly profit of $410 million, 1.112 million Macs, 8.526 million iPods.

Related articles:
Apple Q2 07 financial results conference call webcast this Wednesday, April 25 – April 23, 2007
Apple’s earnings report next week eagerly anticipated – April 19, 2007
Citigroup expects unit sales of 1.45 million Macs, 10.8 million iPods for Apple’s fiscal Q2 – April 11, 2007

23 Comments

  1. That’s 70 cents a share. You don’t know how many shares I have outstanding.
    Of course, my shares are quite outstanding.

    Back on topic, my 70 cent prediction is based on nothing more than my own crackpot theorems, so YMMV. If I’m right, I’ll probably say ‘neener neener neener’ and call it good.

  2. Isn’t this kind of like saying “Analysts expect Apple to beat their own expectations”?

    These guys are ridiculous. Expect one thing and then expect to expect your own expectation to be different…

  3. What most analysts have not accurately figured in are iTunes sales for the quarter. Apple’s sales of gift cards for the Dec. quarter they do not figure in until the March quarter – as they are mostly used up duing that quarter.

    More movies and TV shows will have been purchased, and these are much more lucrative for Apple than music, thus the profit numbers will be quite high for this portion of Apple business.

    Add in Apple TV sales, again small portions of the pie, and Apple Mac and iPod sales, and the total will surprize the market greatly.

    This quarterly report will show the market how diverse Apple has quickly become in several consumer areas.

  4. The trouble counting installed Mac user base against the appletv is a bit corny. How many of the Mac users have a digital tv capable of hooking up to a midi plug in. Some of us are quite content to stay in the analog tv age.

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