“Apple Inc.’s outlook for iPhone sales and the ability to exceed its own earnings forecast will be under scrutiny when the company delivers what is expected to be one of the most-anticipated earnings reports of the quarter on April 23,” Rex Crum reports for MarketWatch.
“In January, Apple set a negative tone for the quarter when it forecast earnings of 94 cents a share on revenue of $6.8 billion, figures that fell well Wall Street analysts’ consensus estimates at that time,” Crum reports.
MacDailyNews Take: Yeah, Apple only forecast 29.3% year-over-year growth in Q2 08. How negative. Yes, we’re fairly dripping sarcasm.
Crum continues, “The company saw its shares fall 11% in one day after giving that forecast.”
MacDailyNews Note: Please see related article: Analyst: Apple was going down to $130 no matter what results they posted – January 22, 2008
Crum continues, “Analysts surveyed by FactSet Research currently estimate that Apple will earn $1.11 a share on $6.97 billion in sales for the quarter.”
“Analyst Shebly Seyrafi of Caris & Co. wrote in a research note that he expects Apple will beat the consensus forecasts, as well as his own estimates for earnings of $1.12 a share and sales of $7.04 billion. Seyrafi believes that the Mac, with its high gross margins, will be a factor in helping Apple exceed Wall Street’s outlook,” Crum reports.
“The analyst added that iPhone unit sales “will be a key focal point,” given the reports of widespread shortages of the devices,” Crum reports. “Along with larger than expected demand, Seyrafi said the smaller number of available iPhones could be tied to Apple trying to clear out inventories ahead of a 3G iPhone launch.”
Full article here.
The multi-billion dollar questions are, of course, not by how much Apple will beat The Street this quarter, but what will Apple guide for the next quarter?
The analysts’ consensus estimates for Q2 08 are $1.06 EPS on $6.95 billion in revenue vs. Apple’s guidance of $0.94 EPS on revenue of “about $6.8 billion.”
For Q3 08, analysts expect $1.10 EPS on $7.14 billion in revenue.