“Of all the earnings reports released this season, who’d have ever thought it would be Apple that could take down the stock market,” Lee Brodie reports for CNBC. “But after the bell, Apple released quarterly results that left pros with their jaws agape. ‘This is a real negative. The Street is shocked by this,’ said trader Tim Seymour, founder of EmergingMoney.com, on CNBC’s Fast Money. Apple missed earnings estimates, revenue estimates and iPhone sales estimates.”
Brodie reports, “For the quarter ended June 30, Apple reported a profit of $8.82 billion, or $9.32 a share. After revisions lower, analysts had most recently predicted a per-share profit of $10.37 a share. Also, Apple sold 26 million iPhone units — the Street was looking for 29 million. This makes problems for the stock market bulls,’ said Dennis Gartman, author of The Gartman Letter. ‘It makes problems for anyone that’s long.’ In part that’s because Apple is the largest company by market cap. And any decline in Apple stock tends to be amplified. But more important, results will also kill sentiment.”
“Apple’s results suggest that recent economic data is not to be ignored; that the global economy is getting a lot worse,” Brodie reports. “Money managers will say, ‘If Apple is not immune (to the malaise) then I’m out of the market. I don’t need to buy anything,’ added trader Tim Seymour.”
Read more in the full article here.
MacDailyNews Take: We follow Apple very closely and we are unmoved by Apple’s Q312 results. Mac units are +2% YOY, iPhone units are +28% YOY, and iPad units are +84% YOY. Apple, at least, and especially in this economy, is doing just fine.
This too shall pass.
Related article:
Apple misses estimates with $9.32 EPS on $35.0 billion revenue – July 24, 2012
I concur with the MDN take.
The Sky is Falling! The Sky is Falling! Time to sell my AAPL stock!
This is the same thing as saying. “World up in arms, collapse imminent. One horse race, winer looses on all six lanes, because they didn’t break the world record, and missed the spread.”
WTH, stop this nonsense.
Earning Estimate, Revenue Estimate, iPhone Sales, are all the same thing. Triple Jeopardy here.
Just sayin’
Hey danilko1,
It is ‘loses’ not looses. Looses is not a word however loose means: free or released from fastening or attachment: a loose end. Lose and lost have only on letter ‘o’. That should help you decide which word to use.
Loose for lose is a common misspelling or grammar error, it is the sound of ‘oo’ that confuses folks. However, look up looses you will be hard pressed to find it. You will be referred back to loose.
Also, it is winner not winer.
Cordially,
Loose the hounds!
Tom looses the hounds?
i don’t think loose for lose is all that common as you claim. More likely a auto-correct error.
On the internet from what I see every day, the misuse of loose in place of lose is more common than the correct usage in posts in every forum I visit.
Maybe you should stay off the Android forums…
up!
By now analists should learn to understand that their self-inflicted knee-jerk reactions (because of their own blown-out-of-proportion expectations) have the potential of causing wild fluctuations of the entire stock market. Hopefully the “system” is robust enough to withstand these (even as more nanosecond algorithms enter the picture). Maybe some of those algorithms, but foremost, some analist behavior should be outruled.
These intentionally generated fluctuations themselves are harmful, because rather than benefiting productive companies that do the real work, it only enriches the analists and their leech friends, who just suck money out of the economy.
I would add….. buying opportunity. Will consider getting some more stock myself, depending on how far down Apple goes.
WHAT earning miss? Apple provided guidance of $34 Billion Revenue and $8.68 Profit per share and delivered $35 Billion and $9.29 EPS… I repeat, WHAT MISS???? Some over enthusiastic wild ass guessers’ drugged up pipe dreams????
Apple guidance was still blown away by reality… the actual EPS was 7% over guidance… a respectable overage. But because they did not blow away the exuberance, the STOCK MARKET IS GOING DOWN??? Give us a break!
+ ∞
It is sheer madness that a single company can bring the entire economy to its knees based solely on what so-called analysts predict the company’s performance ought to be. Do they even consider what Apple’s best and brightest forecast back three months ago? No. Oppy knew three months ago that there would be a slowdown in Q3 due to an upcoming iPhone release in Q4, which is why he honestly gave conservative guidance.
And why didn’t these same people leap to their deaths when MS announced its first quarter loss ever?
Why wasn’t there a ticker tape parade when Google outdid the consensus?
Why does the SEC even allow such market manipulation in the first place?
Maybe Apple should buy back all outstanding shares and take the company private.
This is total insanity and the insane are taking over the asylum.
What manipulation? No one forced people to sell off their stock after hours! It’s simply a reaction to expected higher numbers. Really, that’s all it is. Follow the market and you’ll understand it. But don’t just follow AAPL. Follow other stocks too. Almost all stocks react to projected numbers at earnings time. Why on earth would you think it’s only Apple? It’s not some sinister plot. The whole world isn’t against Apple. You sound like someone who had his dog run over. Apple is just a company. If you need a friend get a dog. It’s just the market. Happens every day. Try to become an informed investor. Read, study, learn to invest. It’s not a conspiracy it’s just the way the market works. Rule number one, never fall in love with a stock.
Apple stock prices have been manipulated quarterly for about 10 years running. It’s no secret. You must be an Apple stock noob.
Bah. Of course it’s not a conspiracy. But follow Apple for the last ten years and it becomes blatantly obvious that the analysts are useless. They got Apple and it’s prospects wrong for nearly 10 straight years. But when they are wrong high, is “disappointing” “disastrous” and a whole host of adjectives designed to force the stock low, when the real take away is that the sustem puts far too much importance on the guesses of analysts.
I’m glad you provided the Apple guidance numbers. I was a little shocked that Apple could have done poorly. I think Apple should survive.
This kind of story has played in many previous quarters – Apple provides conservative guidance, pro analysts provide flawed overly inflated guidance, then Appele falls somewhere inbetween. The “street” frets. However, now thatApple has such a huge valuation, they attach larger concerns.
Every company should have the problems Apple has.
Oh puleeeze… the stock would tank if Apple had beaten “The Street” by 200%
Same old bullshit every time.
EVERY time…righto.
+1
Financial anal-syt are mostly focused on gaming the system to derive maximum profit from gain or failure. They really don’t care about sound economic understanding or forecasting. Wall Street is one huge cesspool.
…a cesspool of sociopaths playing a giant Monopoly game that affects all our lives far too much.
+10
Nuff said.
And we do mean EVERY-FREAKING-TIME! The street really has no clue how to analyze AAPL – still.
It’s breath-taking… WOW!
+ 10 so totally agree. These anal……yst are just either idiots or manipulators. Or both.
Apple beat its own guidance. Its doing better than it projected. World should end.
Not to mention another record quarter when sales of iPhones are hampered due to all of us knowing the 5 is coming. Many people didn’t upgrade to 4s either, opting to wait for the 5.
Throw in iPad mini for the holiday season and I’m buying this dip and saying thank you for the dividend.
People are fools for selling.
Amen.
Talk about the ultimate in Hyberbole, if I were his boss, I’d fire him,
OMG! Only $8.82 BILLION, or $9.32 a share instead of $10.37 a share.
” rel=”nofollow”>The sky is falling!
The only thing it seems Apple is not immune too is good ol’ fashioned Wall Street stock manipulation!
+1 @MDN.
The wall street lame game again. As expected, after hours trades have bashed AAPL down 5.37%.
In other terms: BOHICA.
Wall Street is full of HACK’s in my opinion. They do more harm than good for all the companies that are on the Stock Market. Apple made money this quarter and that is damn good in this global economy. Oh well, that’s life and just keep on putting out great products Apple. 🙂
“MacDailyNews Take: We follow Apple very closely and we are unmoved by Apple’s Q312 results. Mac units are +2% YOY, iPhone units are +28% YOY, and iPad units are +84% YOY. Apple, at least, and especially in this economy, is doing just fine.
This too shall pass.”
Don’t be OBLIVIOUS to what is happening. The world is deleveraging and it will take years to unwind this DEBT in the world. Sell while you can. 2013 will be a disaster!
I believe you are probably right about 2013. I talk to friends and family that say 2013 will be Hell on Earth for the Investor trying to find a place to make money. I’m glad I pulled out back in 2008 completely.
Really?!!! You’re glad you missed $400+ per share AAPL appreciation? Really?!!!
Easy now… Apple is not immune to being held to a high standard of performance. Revisionary history tells a tale of many blue chip companies losing their foothold due to what investors expect versus what they get. As for taking a company this size private goes…. Well I will defer in commenting… Are you kidding me!!!
I get so tired of this horseshit. It seems this represents so much of what is wrong in the world today.
In a depressed economy, we have a company that is increasing its sales in practically everything they produce YOY, not to mention that last year was a depressed year as well. The same company publicly predicts it positive sales and meets them in this turbulent time. Net result? Some flunky says, like an overbearing parent that reads an A students report card, yes but you could have done a little better and BOOM, the world falls apart.
Greed and market manipulation behind a false mask of …GASP…SHOCK…OMG!!! Mark my words, everyone and his dog will be buying over the next dew days and this will all be a stupid reminder of how the wold has gotten into the economic funk in which it now finds itself.
If Apple had introduced a new iMac at WWDC, they would have one more sale. Sure one could get the current iMac, but after 400+ days, I’ll wait. I never had an iPhone. Basically, I didn’t want to double my monthly cell phone bill. With Apple paying out a dividend, and a new iPhone to hit the market shortly, I may just bite the bullet when I get my first dividend check. Then 2013, PowerMac updates for those who have been patiently waiting. I wonder how many others are feeling the same? Pent up demand anyone? If Apple missed the mark this quarter, I wonder if the next quarter will be a blow out?!
Google/Samsung/Android platform is taking a bite out of Apple Mobile/iPhone market. Temporarily. Once the LAW is laid down, they are both SCREWED! LOL
The analysts missed Apple’s earnings –
not the other way around. Apple came in above their guidance, from last quarter’s analyst meeting.
The stock market is a gigantic scam.
Read ‘The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It.’
Nerds with computers making millions at the click of a mouse.
This is how the scam works:
• FUD! spew the wolves.
• Bah! bleat the sheeple art they are herded into the shoot that leads to the rotating knives.
• Lamb chops for dinner! chortle the wolves.
Watch this happen tomorrow (2012-07-25).
‘Sell sell sell’ bleat the sheeple. The wolves sit back and laugh. The sheeple effect reaches completion.
‘Buy buy buy’ bark the wolves. They pick up some cheap Apple stock, which then of course bounces back to something approaching a sane value.
The sheeple are shorn.
The wolves get fatter.
If only it weren’t so easy.
“There’s a sucker born every minute” – Attributed to P.T. Barnum, actually stated by David Hannum, banker, 1869.
“If we should ever separate, my little plum, I want to give you just one bit of fatherly advice: Never give a sucker an even break! – W.C. Fields in the film ‘Poppy’, 1936.
If this doesn’t remind you of political propaganda… 😯
Please read: “• Bah! bleat the sheeple as they are herded…”
brain hurts. brain hurts!
So let me get this straight:
Apple exceeded guidance, YOY comparisons are highly favorable. All that and Apple is sitting on $100 billion in cash, has zero debt, will soon face the “back to school” market with new products in Q3 and has a highly anticipated iPhone release that may come about in Q4.
Global markets are slowing and that’s a simple fact. My take is that competitors trying to launch new product into this environment will have a tough time.
Steve Jobs left Apple with an enormous cash buffer, a solid management team and a product pipeline that will continue to be the envy of the industry. What a great legacy.
@steve h
Yes, but it”s just shy of 118 billion in liquid assets.
Lee Brodie propagating FUD for a nice buy op.
The cheeky bastard.
Regarding AAPL, I’m all in since 2000, and will continue to be for the foreseeable future; that is to say, years.
I believe the whole is greater than the sum of its parts, the ecosystem is greater than just devices.
Apple is building a truly new global brand/model, and thus, room to grow. Stay long AAPL!
‘This is a real negative. The Street is shocked by this,’ – Tim Seymour, founder of EmergingMoney.com, on CNBC’s Fast Money.
BWAHAHAHAHA! Goes to show you the lunacy of the stock market amidst our ongoing worldwide economic depression.
OH NO! APPLE BEAT IT’S OWN EARNINGS ESTIMATE! BUT NOT THE STREET’S! LET’S JUMP OUT WINDOWS AND DIE!
It’s like little children attempting to run the world and FAILing miserably:
Boohoo little babies. Don’t cry. You need your diapers changed. There. Now you feel better! Baby want a bottle?
These people are called ‘professionals’. 😆
@ Derek: It’s close to midnight where I am and I’m having a hard time getting ready to turn in due to your fantastically hilarious and incisive comments hereabouts! Don’t ever stop.
Thank you Jeff il. Laughter keeps us sane.
Apple did NOT miss their earnings estimates! They just didn’t exceed the irrational lies that the Wall Street Crooks were spreading, or that this this writer is claiming. This is the Wall Street Mafia destroying the economies to take down Obama and turn the country into a Corporate Oligarchy! This is Fascism exactly like Germany in the 1930’s. Sieg Heil!
Lets also not forget that apple didn’t release any new products until the week before the end of the quarter with the new laptops..
Apple plays to products coming out when they are ready, not to bolster sales for the market..
Assanine. The entire thing. All they are trying to do is create a quick stock sale..
HP and Dell would have an orgasm if if they even dreamed someone was waiting/wanting to buy one of their products. They are having trouble selling laptops at a price point less than the price of an iPad 2.
Majority of the Android phones sales are BOGO out of date models. BFD Samsung sold 10 million G II’s in two months. Apple sold 35 plus million of iPhone 4S in fewer than 3 months.
“Apple released quarterly results that left pros with their jaws agape. ‘This is a real negative.”
OMG! Apple turns a profit, a good profit but it doesnt meet the anal-ists expectation? WTF is the world coming to? Maybe mikey d was right?!!?!
Come on…….
It doesn’t matter where the blame is placed. In the end, it’s only Apple shareholders that are left holding the empty bag. Apple is making out very well along with all of Apple’s upper management. Many investors can blame the independent analysts who are either very stupid or they lied up to the last minute causing investors considerable losses. All the BS talk about how Apple was going to blow out numbers again and ended up throwing snake-eyes. Never trust the analyss’ view of Apple’s quarterly results because somehow they’ll end up biting you in the ass.
It would be one thing if Apple was priced as a growth stock. Wall Street beats down the price as it is impossible for a company this large to continue growing. So instead of a P/E multiple of 27 Apple trades below the S&P. Then when Apple grows just 27% the sky is falling.
Rationality tells us that Apple will be one of the best value plays tomorrow. Instead the headlines will all read The End is Nigh. Apple’s P/E can and will be compressed. However there are limits to how cheap a company with all this cash and earnings can go. The ride will be bumby but the destination looks delightful.