“Shares of Apple, Inc. (AAPL) might be halted after the close of regular trading today due to much higher than expected revenue and earnings results,” Andy M. Zaky writes for Bullish Cross.
“Occasionally, stocks will be halted when a company’s earnings results come in at levels that are far beyond the normal variance seen in a typical earnings report. In Q1 2007, for example, the NASDAQ halted trading in Apple when it delivered a pretty hefty beat both on the top and bottom lines,” Zaky writes.
“The NASDAQ will typically halt trading in a stock when big market moving news is pending. They do this both to allow a settling in of the news, and to give market makers time to organize the buy and sell orders in orderly fashion,” Zaky writes. “I think this particular report might be one of those situations where the NASDAQ halts trading as Apple’s earnings results are released to the public.”
“Analysts polled by Thomson Financial expect Apple to report earnings of $1.38 in EPS on $9.74 billion in revenue when Apple releases its results shortly after the close of trading this afternoon. The analysts are looking for Apple to sell approximately 4.5 million iPhones, 18.5 million iPods and about 2.45 million Macs this quarter. I’m looking for Apple to beat those expectations quite handedly. I expect Apple to report earnings of $1.81 in EPS on $10.730 billion in revenue driven in part by sales of 7.11 million iPhones, 20 million iPods and 2.72 million Macs. On a non-GAAP basis, I’m expecting Apple to report earnings of $3.12 in EPS on $13.646 billion in revenue driven by approximately $4.266 billion in fully recognized iPhone revenue,” Zaky writes.
Much more in the full article here.
MacDailyNews Note: How did Zaky fare with his Apple predictions last quarter? See for yourself here.