Apple faces tough questions from shareholders next week as tech behemoth reports Q213 earnings

“Apple may have lost nearly half of its value since its peak in September, but it’s still the talk of the town,” Angela Moon reports for Reuters. “Only this time, it’s all about how low can it go?”

“Once a Wall Street darling, Apple faces tough questions from shareholders next week. Its stock is down more than 40 percent from its peak in September,” Moon reports. “And for this year alone, Apple is down 27 percent – still firmly in the grip of a bear market, which Wall Street defines as the loss of 20 percent or more from a recent peak.”

Moon reports, “The company is expected to report a mere 8 percent gain in quarterly revenue, among the weakest displays of quarterly growth in years, according to average analysts’ estimates, polled by Reuters. Earnings per share are expected to fall 18 percent as Samsung Electronics and other hard-charging rivals erode Apple’s market share and put pressure on its margins.”

“Apple shares closed below $400 on Thursday for the first time since December 2011. The stock has shed more than $280 billion in market value since peaking at more than $700 a share in September. On Friday, the stock closed down 0.4 percent at $390.53,” Moon reports. “But Apple, which was once the world’s most valuable company, is trading at nine times trailing earnings. And 45 of 58 analysts polled by Reuters give the stock a ‘strong buy’ or ‘buy’ rating. According to Thomson Reuters Starmine, Apple’s intrinsic value – a price target based on expected growth rates over the next decade – was about $565 a share.”

Full article here.

Related article:
Apple to webcast Q213 earnings release conference call on April 23rd – April 3, 2013

42 Comments

  1. So it’s all about market share and not the majority of profit share with Apple? If that were true and Apple was highest in market share and lowest in profit share they’d get beat up for that too. So I guess to get WS investor approval you pretty much have to be a monopoly making a ton of money. Ooops that didn’t work for Microsoft either.

  2. Tough questions indeed. Like “I’m a whiny bitch that thinks Apple owes me a living. Where is my gold pony?” and “I’m ignorant of everything outside Wall Street’s propaganda and think Apple makes money of stock schemes. What is Apple going to do to funnel money into the pockets of people that had absolutely fuck all to do with Apple’s current success?” Tough, tough questions.

  3. Apple is different. Quasimodo, Jeanne d’Arc, Quixote, Galois, Cavendish, Newton. Brilliant, misunderstood, lauded and reviled by turns, vindicated only by the goddess Clio, centuries after the voices of the ever-present gnawing vermin have been stilled.

      1. well, it was during Steve era. now, what is really different? tell me. Tim Cook doesn’t awesome job at all. he fired very important people last year. this is partial reason to decline this company. do you think that Johnny Ive can do everything? he is product designer mainly. he doesn’t really know about software, hardware mechanism even though he works for apple decades. I mean that he is not expert. APPL will be even tumbling down below $350 anytime. I said before here that APPL will be below $400 anytime soon. I was right. apple is actually doomed. if you want to make more money, invest Google, Exxon mobile, amazon, Starbucks, and so on. especially, Google. it is a good one.

        1. Obvious shills who actually says “Apple is doomed” automatically gets the asshat award for disingenuous display of true moronity and imbecility. I would say “intelligence and proper speaking skills is doomed” for poor Edward. Back to the rice paddy for you.

      1. Every historical figure I named is dead. The manner of their deaths is best left to forensic investigators. The manner of their lives is the issue—that of a fire in the mind, a passion the rest of us can only admire at a respectful distance. They made their choices; we made ours. The vermin don’t make choices, only feed on dead things.

  4. I won’t lie and say I bought Apple at $80 a share. I bought it in the low 300’s. I didn’t buy a lot, but still up.

    Everyone knows that Apple has stayed completely silent during all the rumors going around in the media.

    You have to figure Apple already knows the numbers they are going to report on Tuesday. They already know what they provided as guidance after the last earnings report. They also know that everyone is lowering their expectations.

    I wonder if their plan all along was to lower expectations and then report something ‘out of the ballpark’ beating everyone’s expectations.

    Think the ending of the movie ‘Trading Places’. What I’m worried about is that whatever they report, they are going to provide guidance that is lower than what Wall Street expects and the stock will tank. Where it is now, I could imagine at least another 60 point drop like the the last time.

    Since they already mentioned they wouldn’t announce any dividend increase during the earnings report, if the stock tanks, all the dividend increase announcement will do is hopefully take it back to the level we are at now.

    Is the lowering of the stock price just their way of repurchasing stock at a cheaper amount?

    I was thinking of selling today (especially when it rebounded close to $400), but at this point, I am thinking of sticking it out through the earnings report.

    One of two things will happen: 1) The stock jumps and I am happy I kept my shares 2) The stock tanks and I hope I am still up after the drop and sell my shares and hopefully break even.

    I am a big supporter of Apple and always defend it to those who think Android is the best OS in the world. I am also long the stock, but watching it drop day after day for no apparent reason is just killing me.

    1. A lot of manipulators intentionally influence AAPL stock. Apple Inc. is not one of them.

      Frankly, they don’t give a damn about the AAPL stock price. They care about their products and their customers.

  5. Apple won’t have the answers to those tough questions, because they lie outside of logic and rational thinking. Apple’s stock value fell because of some mis-steps that were compounded by supply and production issues that were unpredictable and unavoidable, resulting in some bad timing forcing difficult choices that were unpredictable but unavoidable, compounded by economic and market issues that were unpredictable and unavoidable, and exaggerated by the hedge funds and other corporate funds that were too heavily invested in AAPL, who then found themselves having to unload their AAPL shares, resulting in a cascade of sell-offs that have decoupled the stock’s value from the company’s performance, made all the worse by Apple’s culture of reticence and focus on product development, rather than on Wall Street showmanship. If Apple is guilty of any real mistake, it is that they’re just too good for this country and it’s culture of entitlement, gamesmanship, greed, and political muckraking. It’s a shame they can’t figure out how to go private again, so they can just rise above all this crap, without everyone blaming them for problems they didn’t create.

    When the stock was going up, everyone loved them. When it went down, they were vilified, and the only thing they’ve legitimately done wrong is to take too much time between product releases – which I’m sure isn’t something they chose to do just because they wanted to mess with everyone’s retirement accounts.

  6. All I know is Apple’s share price is worth less than half of Google’s share price and that’s all there is to it. Google is just a far better company in terms of being an investment. The money they make is steady and dependable. I barely knew their financial call was coming because there was little in the news media smearing the company as a failure like Apple is being smeared. Apple should get into the search engine business with all that spare cash money and not let Google have everything. Android sunk Apple and now looks to take everything away from Apple. Apple’s shareholders have already been destroyed by Android’s majority mind share and it only looks to get worse.

    It appears Apple can do nothing about it so Apple should go directly after Google’s search engine business, tit-for-tat. It’s also hard for me watch a rather decent American company be totally destroyed by a phantom Android OS which is directly Google’s making. Google needs to get some serious payback from Apple. Apple needs to destroy Google shareholders in the same way Google destroyed Apple shareholders. It’s just doubtful Apple’s management will ever grow a pair big enough to take down Google after losing to Android in the courts. I understand Apple’s value falling, but this far is just absolute craziness.

    1. Maybe you should have waited until Tuesday evening before deciding to post this? Then you would know for sure whether this is realistic analysis or anal reality.

      Seriously though, Tuesday’s results are shaping up to be perhaps the most important in Apple’s recent history. Poor results by its own standards will not be the end of the world – and let’s face it, sooner or later all high-fliers come down from the stratosphere – but they might signal that Apple, after a prolonged acid trip, is back among mere mortals.

    2. In 5 years, Google stock is up about 150%. In the same 5 years, Apple stock is up about 230%. I bought Apple stock not Google. Still happy, though not as happy as I was 9 months ago.

    3. Idiot.

      The stock price is only part of the equation. The numbers of outstanding stock is also in play.

      A million stock certificates at $0.50 are worth more than 10 stock certificates at $1000.00.

      Idiot.

  7. I think the anal-ists owe Apple an explanation first. I think blackmail is illegal. I think anal-ists are not looking at Apple as a company only as a cash saver and alls they want is Apple’s cash. There way of getting it is by driving the stock down to force Apple into giving more dividend payouts. Then suddenly you will see Apple’s stock rise magically for a while. Google missed Anal-ists expectations yet there stock rose $33.00 a share today. Yet who makes 75% more money off of phone sales and software sales, Apple does.
    Sorry sir but the explaining should come from the other side not Apple. Apple is doing just fine.

  8. average analysts’ estimates, polled by Reuters. Earnings per share are expected to fall 18 percent as Samsung Electronics and other hard-charging rivals erode Apple’s market share and put pressure on its margins.”

    I disagree . U mean the crappy plastic phone can put pressure on its margins ?

    1. If Apple really cares the competition and the margin affected , Apple should have released a bigger display iPhone . So I don’t think the margin problem is coz of the competition as those who buy Samsung are for its bigger display, no matter how much Apple gives in costs , people just won’t buy iPhone .
      Buying iPhone and buying Samsung are two kind of customers . U know what mean .

      So putting margin pressure is not true till Apple releases a bigger display .

    2. The true reason why Apple margin is down is Apple is changing parts to new suppliers which may have low yield rate . I will see a improvement of margin profit in iPhone 5s . It happened to Apple Eden Apple releases iPhone 4 then in 4s the margin profit up up 4x .
      I expect this to happen again .

  9. Mmmmm…. a mere 8% gain, huh? Well, 8% of 32 Billion is almost 3 Billion dollars, right? Almost more than Googles profits for this past quarter, right? Not too shabby huh?

  10. I think apples drop is stock price has very little to do with the economy or apple or it competitors. But instead is a clear indicator of the problem with wall street, what we have seen with apple is stock manipulation plain and simple. If you put a gag on the “analyst” and ask intelligent people would you invest in a company that has been the lead innovator in the markets it’s entered, takes the largest share of the profits in those markets and has no debt and 100 billion in cash reserves. I think the overwhelming answer would be yes. Wall Street will try to drive the cost down as far as they can then gobble it up and start talking it up again to raise the price.

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