All eyes on Apple as ‘American business jewel’ preps to wow Wall Street

“Monday marks the day that Apple gets to incite the fanatics and quell the naysayers with what’s widely expected to be a blockbuster of an earnings report,” Jim Goldman reports for CNBC.

“Apple’s fourth fiscal quarter will also likely herald the long-sought-after accounting change in the way it books and records revenue connected to its iPhone,” Goldman reports. “And with that change will come the clearest picture yet of just what a dynamic money-maker this company is, and what a jewel it has become in American business history.”

“There is simply no other company [that’s] consistently performing like this one,” Goldman reports. “Look for a sizable beat today on both the top and bottom lines, which is largely baked into Apple shares. The Street is looking for $1.42 on $9.2 billion, though I’ve seen a number of estimates several hundred million dollars higher, and EPS expectations as much as 20 cents higher. On a non-GAAP basis, and with the accounting change connected to iPhone, that third quarter EPS would have swelled to $2.43. Talk about impact!”

Much more in the full article here.

MacDailyNews Note: We will have our usual live coverage of Apple’s earnings results (to be released around 4:30pm EDT) along with live notes from Apple’s conference call beginning at 5pm EDT today.

12 Comments

  1. @Kevin

    It already happened last week.. probably will drop some more today… then tomorrow will possibly skyrocket back up to 191 depending on how much it goes down.. I’d expect them to go up by $4 tomorrow but thats just me guessing… haha now I sound like an analyst!

  2. “Don’t forget to watch for the inevitable stock price drop as Apple releases next quarter estimates less than Wall Street analysts. It happens every time.”

    The AAPL drops every time after earnings cry is a myth. It sometimes does and sometimes doesn’t. It didn’t after last earnings. And even when it does the drop usually lasts about 1-2 days before people realize selling long term AAPl makes no sense.

    So unless you trade AAPL several times a day, this has no impact.

    Want proof? Apple has announced earnings already twice this year. AAPL has risen over 100% since the beginning of the year.

  3. @jtc

    LOL!
    I can play that game too!! :

    “I think that the stock might chance direction, before it will alter to the oppersite, which will be either good or bad, depending on if you’re selling or buying… Have a nice day!”

  4. I don’t think they are doing so well since Microsoft, nokia, RIM, Palm and some other are reporting big losses during they quarter reports and all they are saying this is because the world economic crisis……. Or could be because they need to have a good excuse for performing so bad with their crappy products?

  5. RIMM disappointed with dream numbers(for most companies) and dropped 20 points and hasn’t changed much to this point.

    As usual, Apple truly has everyone baffled yet again…noone really knows what will happen at 5pm. Even if it drops, many are waiting
    to get back in and buy on the drop.

    Another way to look at it is the whole market was above 13,000 and dropped to 6500. During this time AAPL was highest at 201 and dropped to 78. The market is back around 10,000, still 3000 points less than previous, and AAPL was already at 191 last week. To me, that says that alot more people are interested in AAPL as an investment and alot more heads have turned.
    I think the China numbers are going to disappoint, but they are just now getting the ball rolling there, and China Unicoms price on the iPhone is high(like it was initially here in the states).
    Also, the iPod market is getting saturated, and people are on their second or third iPod, not to mention the iPhone IS an iPod plus a phone, so, the iPod sales should be leveling off someat least here in the states. If investors can see the long-term picture and drop the emotion, then AAPL should hit 225 to 250 between Christmas and March regardless of today’s after hours rollercoaster ride. Personally, I’m sitting.

  6. Jim was wrong. Last quarter’s non-GAAP EPS would NOT have been $2.43 a share. It would have been $2.14 a share. You only need to go back and read last quarter’s press release.

    And, just to give people an idea of what the last four quarters looked like, non-GAAP, here they are:

    2009 Q3 $2.14
    2009 Q2 $1.84
    2009 Q1 $2.56
    2008 Q4 $2.69

    In total, the last four non-GAAP quarters were $9.18 a share. Apple is currently trading at about 20x trailing earnings.

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