“CNBC’s December 30 Power Lunch show gave a little insight into the power behind Apple’s stock advance, with Phil Cusick, Managing Director of Mcquarie Research, stressing Apple as a good investment in the current market,” Jonny Evans reports fro 9 to 5 Mac. “It’s all about the company’s track record and its upcoming move to account for iPhone earnings in the quarter they are booked. We’ll let Cusick explain: ‘What really drives this stock is the ability to beat (Street earnings estimates) and force people (analysts) to raise numbers. So we’re looking for nearly $12 in earnings (per share) in 2010, and with iTablet you could see another .50 cents to $1.00 in there, and probably a bit more from iPhone as well.'”
Evans reports, “Cusick believes Apple revenue will climb 25 percent in the current financial year, and notes, ‘The most important thing to understand is that the GAAP (Generally Accepted Accounting Principals) EPS (earnings per share) that Apple reports are not a real earnings number … The real number to look at is the NON-GAAP number, which is closer to what Apple is going to report in 2010 as they shift their accounting a little bit…it’s actually trading at less than 15 times projected 2010 earnings…'”
“Broadpoint AmTech analyst Brian Marshall estimates that the iPhone will deliver $20 billion to Apple’s revenue in 2010,” Evans reports. “That’s real income growth relative to preceeding quarters – and we haven’t even seen the Apple tablet, iSlate, whatever hit the market yet…”
Full article here.