Investors hope Apple’s first-quarter results will fire up stock again

“Investors are hoping Apple can deliver first-quarter results that get the company’s stock going again,” Priya Ganapati reports for TheStreet.com.

“Apple shares are now off nearly 20% from their [closing] high of $198.95 on Dec. 26. The Cupertino, Calif.-based company reports first fiscal-quarter results after the market closes on Tuesday,” Ganapati reports.

MacDailyNews Note: Today, the U.S. Federal Reserve took the rare step of making a 75-basis-point cut ahead of its scheduled meeting. The Fed said it made the move in light of a “weakening economic outlook and increasing downside risks to growth.” Before this morning’s Fed action, Wall Street had been expecting a 75-basis point cut at the Fed’s upcoming meeting, scheduled for the end of the month.

Ganapati continues, “Over the last eight quarters, Apple has beaten consensus estimates by an average of 23%, with the highest earnings surprise of 45.3% in the quarter ended December 2006 and the lowest of 7.1% in the quarter ended December 2005.”

Full article here.

Apple’s results will likely be very nice indeed, but it’ll be Apple’s guidance upon which many on Wall Street will focus.

22 Comments

  1. Buy AAPL and sit LONG TERM! Does anyone get this? When Apple brings AAPL down, then consider a change, but when the world economy brings Apple down, sit or buy. I’m looking forward to refinancing my house in the near future…will save alot over the life of the loan. When some part of our country is down, the other will be up. Play that instead of your emotional daytrading and hoarding.

  2. what is going on with the apple stock has nothing to do with apple – but all about the global economy (and the us economy)…

    I view it that APPL is ‘on sale’ at great prices. Dollar cost averaging is YOUR FRIEND!!!!

  3. Stocks are already fired up. Last year it was in the mid 80’s right? It’s doubled since then, so be happy you greedy little investor maniacs. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  4. I wish Apple would stop the practice of giving specific guidance. It is always inaccurate, and it is not credible to give guidance when you know you are going to be it ‘just to play safe’.

    Many other companies have discontinued this practice and let the market decide on guidance, like they do anyway with Apple.

    Being off guidance by 15-45% every time is just not credible.

  5. As investors, we’re entitled to a fair assessment of the company’s prospects looking forward. Such assessments tend to be conservative because if the company overstates their prospects some stockholder will jump at the chance to sue.

    On the other hand, I’d love to see outside analysts abandon the notion of “price targets”, as they’re an invitation to abuse and tend to make a stock more volatile. Such targets only really benefit traders.

  6. Unfortunately, the roller coaster of the last few days is the harvest sown by US lenders lending to people beyond their means and then finding a way of laying off the risk by chopping, dicing and re-parcelling the questionable debt around the world.

    A light hand on the rudder of the financial industry is one thing, but several administrations over a couple of decades have let the politically-expedient promise of cheap money and property ownership outweigh the long-term structural integrity of the global economy.

    And now, despite the fact that someone else made a lot of money selling bad credit, the US taxpayer is going to be given back a miserly portion of its own money back (assuming the legislature and executive can agree) allegedly in order to stimulate demand.

    If this mess – including the fact that (in many countries) lending banks are no longer tracking their central bank minimum lending/reserve rate – is not sorted out relatively quickly, we will see a recession and this one could be ugly.

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