“In the past three months, Apple set new sales and profit records for the quarter and wrapped up a fiscal year in which it blew past the $100 billion mark,” David Goldman reports for CNNMoney. “It sold an all-time record number of Macs and iPads.”
Goldman reports, “It sounds strange, but this is what a bad quarter for Apple looks like.”
“Despite those records, Apple’s revenue and earnings this quarter fell far short of Wall Street’s forecasts,” Goldman reports.
MacDailyNews Take: Wall Street’s been undershooting for seven years now. Now they’ve finally overshot. Either way, they still can’t get it right. The two greatest jobs in the world: Weather forecaster and Wall Street analyst. No accountability and you just keep getting paid.
“Those numbers disappointed investors expecting more, and shares of Apple fell 7% after hours,” Goldman reports. “At the market’s close Tuesday, the stock had finished regular trading at an all-time high of $422.24.”
“The Cupertino, Calif.-based company said its net income for the quarter rose to $6.6 billion, or $7.05 per share, up 54% from a year earlier,” Goldman reports. “Analysts polled by Thomson Reuters had forecast earnings of $7.39 per share. Apple’s sales rose 39% to $28.3 billion, but badly missed analysts’ estimates of $29.7 billion. The company’s sales for its full fiscal year, which ended Sept. 24, were $108.2 billion — a giant leap ahead of the $65.2 billion Apple raked in last year, but short of the $109.5 billion Wall Street forecast.”
MacDailyNews Note: On July 19, 2011, Peter Oppenheimer, Apple’s CFO, gave Q411 guidance of “revenue of about $25 billion” and “diluted earnings per share of about $5.50.”
Goldman reports, “Apple also finished the quarter with an ungodly $81.6 billion in cash, which the company said it intends to hang onto for possible acquisitions or unexpected bumps in the road.”
Read more in the full article here.
MacDailyNews Take: As of 6:23PM EDT, AAPL shares are off $27.04 (-6.40%) to $395.20 in after-hours trading. Anyone praying that the panic deepens or at least lasts until tomorrow’s open? Ready to back up the truck to fill it with discount AAPL shares?
Related articles:
Wall Street got ahead of itself on Apple; shares plummet in after-hours trading – October 18, 2011
Apple posts record revenue of $28.27 billion, misses Street expectations for first time since 2004 – October 18, 2011
Idiots assay idiocy
Wow that makes perfect sense…NOT. Freaking ANALyst! lol
“Apple’s sales rose 39% to $28.3 billion. The company’s sales for its full fiscal year, which ended Sept. 24, were $108.2 billion — a giant leap ahead of the $65.2 billion Apple raked in last year. Apple again edged out Exxon Mobil to be the stock market’s most valuable company in the world.”
“Apple sold more than 17 million iPhones. The iPad and Mac both set sales records during the quarter. IPad sales rose to 11.1 million, and Mac sales soared 4.89 million — the first time Apple has even sold more than 4 million Macs in a quarter.”
That’s some AMAZING news, yet Wall Street Analysts are setting the stage for how this plays out. Wall Street Analysts EXPECTATIONS (& possible manipulations) are what’s driving the price of the stock and NOT REALITY. What does that tell you?? #OWS
Good call MDN. If it can stay down at the open tomorrow it will be a good opportunity to move in. I predict another great buying opportunity in November, when rampant rumors will precede a MacBook Pro update and the real product will “disappoint”. This will be repeated next year with the new iPad, and the next iPhone…
Steve was right never trust investors.
Tomorrow will be a buying opportunity like no other for smart people.
No wonder “Occupy Wall St.” feels the way they do, no accountability by analysts.
Occupy Wall Street is comprised of ignorant kids with zero understanding of how the world works:
And Howard Stern is your genius, genius.
If Occupy Wallstreet was comprised of ignorant kids with zero understanding of how the world works, they wouldn’t be occupying Wallstreet.
Wrong. It’s exactly because they are clueless that they’re down there protesting. All they know is the grass is greener on the other side, even though they have no idea which side they want or where it is.
Nice you guys enjoying bending over for Howard Stern, are you guys making more than Wall Street?
Most “analysts” are clueless. And investors who rely on analysts are even more clueless. I laugh at the ones who bought at yesterday at $420 and sell in panic tomorrow below $400. Even a buy at $420 will be richly rewarded long term.
Excluding the expectation of those clueless analysts, Apple had another record-breaking quarter, with NO revenue from the usual (since 2007) new iPhone model release.
Next quarter will have the ENTIRE iPhone 4S new release revenue, plus it is one week longer (at 14 weeks) than usual this year. Those analysts will be apprehensive after overshooting this time, and they will be conservative again.
Scr*w the anal-ysts. What the heck is wrong here? Apple is rocking-n-rollin and they take a beating because the experts guessed wrong. I am “all in” with Apple, thank you.
I was All-in twice. Once when Jobs became the iCEO and unwrapped the iMac, and the second time when the stock market crashed in 08 and Apple was under $90…. Ever have the nuts in poker, go all in, but only have a few chips left to go all in with? That’s me. 🙂 Royal Flush with $2 in chips.
I bought recently at above 420.
I regret nothing.
So, when Apple makes more than the street expects – the stock drops. When Apple makes less than the street expects – the stock drops. I’m thinking that Apple should stop announcing their earnings. Sadly, the one thing that does not seem to occupy Wall Street … Logic.
+1
Analysts counted in an iPhone 4 successor, which did not materialize in Q4. All expected iPhone revenue is just transferred to Q1 and that’s all folks. Nothing to worry about. Only dumb whiners and douchebags sold AAPL after hours for cheap.
It’s easy to see why so many are frustrated with Wall Street.
Now we know why Wall Street protests are spreading all over the world like fire!!!
100% YOY growth couldn’t last forever (especially with a delayed iPhone)
Exactly.
The Street got tired of being so thoroughly embarrassed every quarter that they applied the same amount of thought to this quarter’s estimates, the only difference being that they upped their guesses by 25%. They didn’t take into account where Apple is in their product cycle any more than they usually do.
Watch these clown scale back their estimates again for the holiday quarter and have Apple blow them out of the water.
If only I had a spare $50k lying around. I could probably make $10k in less than a week!
Apple shareholders are going to feel mighty stupid when Amazon announces its quarterly results. They’ll barely squeak by with their numbers and the stock will shoot up another $20 and the P/E will be about 115. That’s when recent Apple shareholders will know they’ve picked the wrong company to invest in. Buy a stock that performs for shareholders, not just for the company. Apple can make all the money in the world and shareholders will wonder where all that money is going to. When a company is piling on revenue like no tomorrow and Wall Street can still find reasons to take the stock down, then there’s criminal activity going on. Madoff couldn’t do better.
Not exactly a great month for Apple and it looks to end up with a big splat. The stock is only down close to $30 points, so buy all you can. in a week it’ll be down another $30 and you can buy it there, too. Apple knocked it out of the park this quarter. Too bad it was just a lousy foul ball.
Troll.
Fake troll, not a real one.
Needs more work on his shtick though…
I think you are totally misreading TheWiseInvestor message. He is speaking the reality of Apple’s stock. Traders are making a ton on Apple’s fast moves up and down. Traders love AAPL because it has a predictable pattern of swings, and it is being played. But it can frustrating for investors who see Apple as a solid company expecting the stock to reflect the growth and success of the company. All he is saying is AAPL is getting the shaft, but wake up and know that the stock is in play and traders are playing the hell out of it, at the expense of regular investors trying stake a claim with a great company.
Go ahead. Make my day. Short sale AAPL…….. I DARE you…..
You Apple lovers just don’t get it! Buy low sell high….Get out while you can already. Don’t be greedy….It’s been a great ride. Apple is the largest company in the world. How much more growth can you get out of a stock?
10 years ago we had Steve Jobs, Bob Hope and Johnny Cash – Now we have no Jobs, no Hope and no Cash.
Think about it…………………..
Since when can a company that posts >80% increase in profit be called a has-been.
What other large cap company is posting that type of success?
And this with their main revenue product at the end of its product cycle.
This is another “expectation” delusion. Like what happened with iPad launch and iPhone 4S launch. Definitely will rebound in a few days.
earnings up 54% year over year. Earnings per share 95.4% of analysts predictions. Wall Street seizes an opportunity to “go volatile.” It’s like a pick pocket starting a bar fight.
This is truly the height of illogical and irrationality. Apple has a record quarter during tough economic conditions domestically and globally, yet because some idiot analyst crunched a few numbers and set a revenue bar that was higher than actual results, the stock plummets!
Hold on to AAPL, folks — the company’s fundamentals are sound, the management is supremely competent, and, as we all know, the company makes great products that consumers appreciate.
Building wealth through investing requires patience and a long-term vision, so park those shares for the long haul.
I will add that I do think that the Apple Board should declare a modest dividend at some point, with all the cash the company is sitting on. They have more than enough dough to invest in ventures, acquire companies, pay up-front for supply contracts, etc. etc. and still give a profit share back to the owners of the company…This might also reduce some of the volatility that we’re seeing in the stock price, encouraging investors to hold on to their shares to get the payout…
Walls Street analysists are fu@#ing IDIOTS!!!
Boycott Wall Street.
Boycott Google.
Boycott Samsung.
Boycott every boogie man behind the tree.
Boycott anyone who doesn’t agree with me.
Boycott the heathens forever more.
Boycott till can we can boycott no more.
MDN take: “The two greatest jobs in the world: Weather forecaster and Wall Street analyst.”
At least a Weather forecaster bases his/her predictions on extrapolation of physics and physical laws.