“Fear not Apple fans. If you thought the third-quarter earnings miss was a sign of things to come, you may want to reconsider that thought,” Chris Ciaccia reports for TheStreet.
“According to the ‘Apple Monitor’ compiled by Topeka Capital Markets analyst Brian White, the consumer tech giant had its best July on record, with Apple’s supply chain enjoying record sales,” Ciaccia reports. “The Cupertino, Calif.-based firm enjoyed the strongest month-over-month sales growth of any July in the past eight years of the Apple Monitor. White said that July sales rose 14% month-over-month.”
Ciaccia reports, “‘This July was well above the 7% growth experienced last July, supporting our view of an earlier launch of the iPhone 5 versus the iPhone 4S last October,’ White wrote in his report. ‘We indicated in June that we felt that the iPhone 5 would be launched in September, along with the ‘iPad Mini.” He rates Apple shares “buy” with a $1,111 price target.”
Read more in the full article here.
Apple did NOT “miss” last quarter. They beat their own guidance and the YOY quarter. The people who missed were the analysts. so, nothing new here. Apple continues to grow, even in a crappy economy.
Crappy economy for whom? The growth is coming from, primarily, China… Plenty of money there (and opportunity for continued growth with penetration somewhere at < 3% currently), wouldn't you agree? Silly analyst can't seem to grasp this in a "World Economy".
In other words, prepare for successive monster quarters for the foreseeable future.
My target? 1,500 by this time next year…
🙂
I don’t know why these myths keep being perpetuated. The only way Apple could be said to have “missed” is if they hadn’t met their own guidance. Just because the analysts got it wrong (which they do more often than not) is no reason to fault the company (any company). A company isn’t responsible for analysts’ wild guesses.
stupid reasoning. The street estimates are what matter. What if Apple guided a $1.00 EPS? Would we all be ecstatic if they made $2.00? It would be a huge beat.
The stock doesn’t trade on Apple’s estimates. When they are often shattered by upper double digit percentage they become meaningless.
Bash the Street all you want but the fact is their estimates are better than Apple’s own – every single time.
So let me get this straight: The analysts estimate Apple will do X and they do x (big vs little) and the stock gets slammed for a few weeks. Now those same analysts are saying “Fear not, we’re estimating they’re going to do X this quarter” and you’re going to entrust your wealth to them? Or are you entrusting your wealth to your historical knowledge of how their estimates affect share price leading up to, immediately following and then long after earnings reports?
Street estimates affect short term stock prices, so they matter to speculators. They have no effect on long term viability of the stock nor of the company itself.
Yes, analyst quarterly estimates will drive short term stock prices up or down. When they are wrong (high or low) the ensuing market corrections are for their mistakes, not the company’s. But those are analyst “misses” not company failures. And they have no real affect on long term investors, unless they had already planned to sell for non-speculative reasons.
If you don’t want to accept company guidance, fine, (most do prefer to err on the side of caution) but it is a leap of faith to believe the analysts are going to get it right.
They frequently do not have all the pertinent facts. During my management years in a major corporation, there was frequent board room amusement and head shaking about analysts’ often mis- ill- or un-informed opinions and/or questions. And we didn’t try to keep our information as much under wraps as Apple does.
After guessing low for several quarters in a row (I don’t care enough to try to keep count), analysts fell all over themselves raising their guestimates for last quarter. Watching all those feverish statements being issued day after day, I would have been very surprised to see Apple beat them. But again, the “miss” was on the analysts’ part, not Apple’s.
Wow with only a 16.9% market share of ios they make that much money, wow, whos the idiot? the guys at apple or the morons who pay 5 times more for it than what its worth. Not sure where they got 7% increase, but excluding europe, australia and asia leaves not many places apple have seen increases in sales. Who buys apple now days anyway?
Value is in the eye of the beholder. Just because your tastes are significantly different than mine does not make yours superior to mine. Use whatever matches your taste, I certainly am quite aware of the “value” quotient I am receiving with my preferences, are you even aware of yours? One has to wonder just what justifies value on the face of what that statement says. I know that no matter what platform I back, it will CERTAINLY never be the one who’s sole business model is selling me out for their profit. If my information is THAT valuable, I certain want my fair share, it is obviously MINE to begin with.
Not sure? Look at RIMM, Nokia, and Microsoft results. It should be obvious. And BTW, my 2008 MacBook will run the new ML version of OSX, and shows no signs of needing replacement. My Windows centric uncle has replaced two laptops and a netbook since 2008. Who’s the moron?
Well, let’s overhype the next quarterly results so we can say Apple didn’t meet expectations.