“Apple is unique among the world’s mega caps due in part to the company’s extraordinary rates of revenue growth and extraordinary rates of revenue growth matched with consistently high gross margin,” Posts At Eventide writes for Seeking Alpha. “Over the most recent six fiscal years, Apple’s recognized revenue rose nearly sixfold and earnings per share rose more than twelvefold. In the first six months of the current fiscal year alone, Apple’s revenue rose 66.35% to $85.52 billion and EPS rose 104% to $26.17 per share.”
“At Friday’s closing price of $574.13, the shares are trading at a conservative 14 times trailing 12-month earnings of $41.04 with more than $115 in cash standing behind each outstanding share,” Eventide writes. “For investors, understanding Apple’s potential for continuing strong growth is at least as important as an appreciation for the company’s growth performance over the past six and one-half years. At Friday’s closing price and lowly earnings valuation, the market is discounting Apple’s continuing growth potential.”
Eventide writes, “There’s no disputing the fact Apple designs and markets some of the world’s most sought after consumer products. But Apple’s success is driven by more than smart product designs and technological innovation. Relentless geographic expansion is an important catalyst for the company’s fast rates of growth. If Apple were a bullet train, it would be a bullet train powered by two parallel tracks. The first track is exceptional product design and the consequential product popularity. The second track is expansion of product sales into new and emerging markets.”
Read more in the full article here.
Robert Paul Leitao is the writer. “Posts at Eventide” is the website.
An excellent article. Nicely headlined paragraphs, clean prose and solid facts.
Robert is the best when it comes to documenting Apple’s stellar growth.
Apple is Ford 1909. Fifty years from now they will rule the world
And this is good how?
Prolly good for folks who hold AAPL, I guess.
All the fundamentals of AAPL are for naught is the macro environment is amuck. A fiscal catastrophe awaits in US debt and the US dollar remaining the world’s reserve currency. In a matter of just days, as soon as someone says the emperor has no clothes, September 2008 will look like the golden years.
Its over. Be ready for whats coming bubba bear.
hah,just like that? our Microsoft have bigger revenue than apple…
Nice try, but no cigar…
No doubt that Apple is doing very well on many fronts, but the share price is still pretty much stuck. I’m very certain the MacBook Pro is going to be a top seller but it sure hasn’t got the investor’s interest. I guess they’ll need to see another blowout quarter, but so far the last two blowout quarters haven’t done anything much for Apple’s shareholders. Apple is a very long way from even average or median price targets, so I’m not sure what the catalyst is going to be to move Apple back over $600. If investors are only waiting for the new iPhone to excite them, then something is definitely cockeyed with their reasoning. Maybe the failure of Windows 8 will convince them that Apple has the upper hand in the computer industry’s future.
“So far the last two blowout quarters haven’t done anything much for Apple’s shareholders.”
When Apple announced earnings in January, the stock was trading at about $425. It’s now at $570+. That’s nearly $150/share higher.
AAPL, like the overall market, is going through some difficult times. Impatience is not an investment strategy.
It is not only that Apple is doing well, but Apple’s competition is performing poorly:
• I admire MS for betting the farm on Win 8, but having used it for a few weeks I think the farm will not produce a decent crop. Their potential Win RT laptop is not compelling.
• I admire Nokia for betting the farm on Win Mobile, but while good, has not yet leap-frogged iOS or Android.
• HP and Dell are redefining themselves as corporate providers.
• Samsung is succeeding through copying Apple’s playbook — not a lasting game plan.
• Google has failed most businesses beyond search. With Bing and Siri nibbling at Google’s lunch, times will get tough for them.
I can only see Apple gaining more and more share and profits by their excellence and their competition’s failures.