Get ready for Apple’s $20 billion revenue explosion

Apple Online Store“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.

9 Comments

  1. It’s not like found money! The Street knows the real numbers and probably have a spreadsheet that adjusts the two reporting processes, but its still stubby-pencil processing known only to a select group of people who get these “special” reports and addendum.

    The real impact in 2010 will occur as the Street begins to plug in the actual numbers into the System for all of the computers to process and all to see. The trickle down effect will paint a more accurate picture of what Apple is accomplishing and the boost will be a revelation.

    Go AAPL!

  2. @G4Dualie,
    “the real impact in 2010″….. Actually I would like to think that once Apple gets so big that all the craptastic pundits can no longer shake the stock with wild rumors, then the stock will mirror actual value.

    Right now, its more fun for these people to shake a limb so they can control the price than it is for them to accurately report on the company.

    Just a thought,
    en

  3. Although I’ve been a Mac enthusiast for 24+ years, I’ve only owned Apple stock for the last couple of years. As a “long” investor, I am a bit worried about about the upcoming announcement. It seems to me that after the ground-breaking success of the iPhone, the expectations for the “next big thing” (= tablet?) have been raised so high that any perceived misstep or failure to meet the pundits’ over-the-top predictions will result in a major sell off of Apple stock. The margin of error for Apple seems so thin that I truly wonder if ANY new product can meet with the stratospheric level of expectations.

    I obviously hope that Apple releases a product that re-defines mobile computing and totally blows all of our minds, but Steve Jobs et al. are only human and I wonder how Apple can possibly maintain the level of successful innovation we’ve seen since the release of the first iPod.

    I guess that I just trying to temper the wild-eyed Apple-enthusiasm that many of my friends accuse me of with a healthy dose of reality about the limits of even the most brilliant technology innovators.

  4. What’s going on today?

    Is it national “Pump and Dump” Apple shares day?

    Every article has blind speculation on numbers, sales, units shipped, etc.. They’re all reporting massive numbers, AAPL is climbing high, everyone’s buying the stock.

    Then, the other shoe drops…

    Real numbers come in, with great growth, steady increases, and the Experts all bemoan the missed “Whisper” number… And the stock tanks…

    PUMP and DUMP

  5. Anyone that has followed Apple and the tech sector knows that Apple is the shining star in this sector. Continued growth, no long term debt, huge cash reserves, and continued success in a downturned economy are just some of the highlights. Innovation and investment in the future are also Apple trademarks. Analysts don’t always see all this.

  6. If you are ready to make a major purchase in you life and you have gobs in AAPL now is the time to sell some of it and make you purchase.

    There ain’t gonna be no table by the way.

  7. @ Jack

    That’s terrible advice, Jack.

    Sell after the Apple quarterly earnings reports, not before!

    Sell after the January announcement, what ever it is.

    Oh, and I can also confirm Apple won’t be releasing any Table. Microsoft has that market all locked up.

Reader Feedback

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