Apple’s monster quarter and the pending share price advance

“Apple (AAPL) is unique among America’s mega caps due to the company’s ongoing rates of revenue and earnings growth,” Posts At Eventide writes for Seeking Alpha. “From $108.25 billion in revenue reported in the fiscal year ended in September, Apple will surpass $170 billion in revenue this fiscal year and reach over one-quarter trillion dollars in revenue in FY2013. At a current market cap of $375 billion, the shares trade at about 14.5 times trailing twelve month earnings of $27.68 per share and at about 8.75 times my projected FY2012 earnings of $46 per share.”

“Because of the company’s frenetic rates of revenue and earnings growth, Apple is in an equity class all its own,” Posts At Eventide writes. “Apple will deliver a third consecutive fiscal year of revenue growth above 50% and eps growth above 60%. This fiscal year’s strong performance begins with what I call ‘Apple’s monster quarter.'”

Posts At Eventide writes, “I maintain a $640 price target on the shares. A recovery to a trading range between 16 times and 18 times trailing 12-month earnings will occur early in 2012 following the results from “Apple’s monster quarter” and the significant analyst upgrades to revenue and earnings estimates that will follow.”

Read more in the full article here.


  1. Be nice to be well clear of the sub-$400 stock doldrums. About time Apple got a little north of $500 respect. Note to market: despite whatever FUD you try to manufacture Apple will still continue to lift all boats.

    1. AAPL @ $425 following anything resembling a LEMN curve on earnings is almost a given. Then, to shoot up to $500 requires no more than a modest rise in PLUM prerequisites across the usual suspects: emerging markets, retail, etc.

      However, that all goes without saying.

      The real driver to share growth is new products. Excitement and success surrounding a new product in the post Jobsian era is what everyone, including Wall Street, is waiting to see.

  2. I don’t know much about finance… But I do know a bit about bullshit. I’d love for it to stop and Apple actually get valued at what it’s worth for once. Slow and steady wins the race, and that’s fine… We aren’t going to get our split until then!

    Btw my new years wish is a split, 2 or even 3 for 1, that would give more people a chance to get in on the best stock on the lane 😉

    – Apple Pi

        1. The large investors who really drive the price understand that the fundamentals are what drives the success of a stock. If someone is waiting for it to split so they can buy 5 shares, it’s a drop in the bucket.

        2. Phsycologicaly and historically splits generate huge momentum buying of popular stocks. True, a split does nothing to fundimentals or balances we’re not infants here but there are many investors wishful of owning Apple stock because they understand it’s value present and future, but won’t buy because at these prices, even a decent dollar investments won’t buy them a decent size position…

          I’m sure anyone who really want to make money on an investment realizes that the bigger the position (size) the more you can make in a shorter amount of time and that encourages an even longer hold…

  3. $440 might not be too farfetched in the near-term but that $640 target price is just stretching things too far. Who’s going to be buying Apple to run the stock up that high. Supposedly the stock is already overbought. So many hedge funds already own Apple stock that there doesn’t seem to be any big investors left. Apple will keep running into the position of the market cap already being too large, despite it being quite a bit lower than ExxonMobil’s market cap.

    I sure hope Apple stock does run up $40 or so next month, but I’m not holding my breath about it seeing how disappointing the last two quarters were.

  4. $170 billion in just one fiscal year dwarfs everyone. All the FUD in the world can’t conceal or ignore that and no spin exists that can take away from these figures.

    Undervalued? Apple’s stock is at a fire sale price.

        1. i always liked the hockey puck, and am planning on buying another bondi, as well as a bondi keyboard for my old 233.
          as for iCloud, i have no problems with it, although the random syncs when i get home on either the iPhones or iPad can sometimes be annoying.

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