Citigroup raises Apple EPS estimates to new Street high

“Citigroup is raising their estimates on Apple (AAPL) to a new Street high,” Notable Calls reports.

“Firm now expects $7.0B rev(prev $6.9B, consensus $6.95B), 36.5% GM (35.2%, ~33.5%), and EPS of $1.23 ( prev $1.14, consensus $1.06),” Notable Calls reports.

Citi recommends a “Buy” on the stock with a $212 price target and expects Mac unit shipments of 2.1 million (+38% yoy) vs. the analysts’ consensus of 2.06 million, iPod unit shipments of 9.5 million vs. consensus of 10.5 million, and iPhone unit shipments of 1.5 million.

“Citi expects Apple to guide 2CQ revenue flattish sequentially, gross margin down sequentially, and EPS down sequentially, none of which should shock the Street,” Notable Calls reports.

Full article here.

MacDailyNews Note: The analysts’ consensus estimates for Q2 08 are $1.07 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.

Apple reports this Wednesday, April 23, at 2pm PDT / 5pm EDT.

[Thanks to MacDailyNews Reader “Mike in Helsinki” for the heads up.]

9 Comments

  1. Richard Gardner covers Apple at Citigroup. His name is absent from this item.

    One of the largest shareholders of Apple shares is also one of the largest shareholders of Citi – Prince Alwaleed Bin Talal Alsaud.

    Conclusions? Anyone? Yes, you, go ahead, connect the dots for us.

  2. Is this Prince Alwaleed Bin Talal Alsaud the dude who poured money in to AAPL when they were at 12?
    Anyone want to do the math? Not sure how much he put in at that time. It’s a shame that MicroSoft sold their shares in Apple. It would have slowed their death spiral speed.

  3. “Citi expects Apple to guide 2CQ revenue flattish sequentially, gross margin down sequentially, and EPS down sequentially, none of which should shock the Street,”

    With the economy in a recession and possibly skidding into a depression, it’s remarkable a discretionary/luxury maker like Apple could achieve ANY growth.

    Then again, we’ll see how bottom-feeders like Dell fare in the months ahead…

  4. Does Prince Alwaleed still hold his Apple stake? I thought he had sold.

    My eps target of $1.30 no longer looks like a blowout when you have analysts raising their eps target to $1.23.

    So, the stock is up 4% today, there’s your price bump Thursday, here today. The only problem is that it is more likely to set Apple up for a selloff.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.