How Apple will continue to surprise Wall Street

“Apple (AAPL) posted EPS of $1.25 or more yesterday, beating the high range of its conservative $0.90 to $1 EPS guidance by 25%, and beating consensus $1.09 estimates by 14% or more,” Timeline Strategy Consulting writes for SeekingAlpha.

“It posted revenues of at least $7.8 billion and continues its recent trend of booking $3 or more billion in net cash for the quarter. I have made conservative assumptions about its ability to sell some products in an economic environment such as we have had, but the biggest potential surprise may be upside EPS,” TSC writes.

“Apple’s growing cash pile is good for a dime or more in EPS every quarter, at this point. Perhaps this is one point that the analysts miss,” TSC writes. “While Apple may not be completely immune from revenue pressure due to economic headwinds, it is really difficult to envision a scenario of less than $7.5 billion in revenue. Favorable component pricing and healthy margins may generate upside EPS surprise. $1.30 or $1.35 would not surprise this Apple watcher at all.”

Full article, with Q309 Mac, iPhone, iPod and other predictions, here.

MacDailyNews Note: Apple yesterday provided Q309 guidance of “revenue in the range of about $7.7 billion to $7.9 billion and diluted earnings per share in the range of about $.95 to $1.00.”

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