“Barclays Capital’s Ben Reitzes this morning dips into the outlook for capital spending, writing that it may imply revenue above Street consensus,” Tiernan Ray reports for Barron’s.
“The Street is modeling $139 billion in revenue for Apple this fiscal year ending next September,” Ray reports. “Apple projects it’ll have capital spending of $8 billion this year, up from $4.6 billion last year.”
Ray reports, “Apple has lately been increasing spending as a percentage of revenue, with spending last fiscal year rising to 4% from 3% in the years 2006 to 2010. So, Reitzes opines that if Apple were to increase its ‘capex-to-revenue ratio to 5% in FY12, based on its capex guidance it would still imply an FY12 revenue figure of close to $160 billion.'”
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