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Earnings surprise: Why Apple will beat the Street

“Apple (AAPL) ended November trading at $585.28 per share. At the closing price on November 30th, the shares traded at 13.28 times trailing 12-month earnings and off 17% from the all-time high of $705.07 set on September 21, 2012,” Posts At Eventide writes for Seeking Alpha. “In the ten weeks since the all-time high, analysts have reduced their expectations for the company’s December quarter and the fiscal year ending in late September. The changes in analyst expectations have contributed to the recent downward pressure on the share price.”

“Apple will beat the Street’s revenue and earnings consensus estimates for the December quarter and the Street’s consensus estimates for the current fiscal year,” Posts At Eventide writes. “In today’s article I will explore the factors that will deliver an earnings surprise when Apple’s quarterly results are released in late January.”

Posts At Eventide writes, “I expect the share price to retrace to the all-time high by the first trading day of February 2013 through a gradual recovery of lost ground over the next sixty days. Management’s eps guidance and the Street’s consensus eps estimate are not supported by the company’s earnings to revenue ratios measured over the most recent eight fiscal quarters.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

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