“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
Damn! Only $35B in revenue…only $8.8B in profits…only 4M Macs sold…for an entire quarter! (sarcasm)
It wasn’t so long ago that 1M Macs in a quarter was a big number. And, at that time, Apple revenues and profits were not being bolstered by sales of tens of millions of iOS devices. Apple continues to perform very well in a very difficult and uncertain world financial situation. In my opinion, it is still all good. Sure, it would have been great to sell before this news and then buy back in at 5% lower. But it is risky for individual investors to play the timing game. We don’t have access to the inside information, so buying and holding good stocks or no-load mutual funds with reasonable expense ratios is generally our best bet.
Well off course iphone and imac will be a slow seller atm due to the upgrades will be released in the near future, what are these wall street idiots thinking? Here we have proof that these wall street lot are a bunch of idiots, and its a shame that these lot influence stock prices to some degree. Just wrong. Wait till the new iphone 5 comes out, sales will be sky high
And let’s not forget who brought this financial disaster upon us.
At President Clinton’s direction, no fewer than 10 federal agencies issued a chilling ultimatum to banks and mortgage lenders to ease credit for lower-income minorities or face investigations for lending discrimination and suffer the related adverse publicity. They also were threatened with denial of access to the all-important secondary mortgage market and stiff fines, along with other penalties.
The threat was codified in a 20-page “Policy Statement on Discrimination in Lending” and entered into the Federal Register on April 15, 1994, by the Interagency Task Force on Fair Lending. Clinton set up the little-known body to coordinate an unprecedented crackdown on alleged bank redlining.
The edict — completely overlooked by the Financial Crisis Inquiry Commission and the mainstream media — was signed by then-HUD Secretary Henry Cisneros, Attorney General Janet Reno, Comptroller of the Currency Eugene Ludwig and Federal Reserve Chairman Alan Greenspan, along with the heads of six other financial regulatory agencies.
“The agencies will not tolerate lending discrimination in any form,” the document warned financial institutions.
So this is where it all started. In 1994. When the government pressured lenders to qualify the unqualified. To put people into houses they couldn’t afford. Or else.
I know people who decided to wait for iPhone 5 back when iPhone 4S came out because it was only an internal refresh. IPhone 5 release is the only problem here, and the anticipation and buyers holdout is a great problem to have…expect it to destroy records. Remember, iPhone 5 is the last project Steve Jobs worked on, knowing he didn’t have much time left. He is gonna blow us away and impact our lives even a year after his passing. Only Steve could do that. I wish Apple would call it the iSteve or something to give him his credit due.
If Apple will cause a takedown because it didn’t live up to unrealistic expectations, then it should go down.
The stock market is full of greedy little pussies that freak every time they lose a penny.