“Apple Inc. plans to report fiscal second-quarter results on Tuesday, after a bruising winter for the stock, which is back down to 2011 levels,” The Associated Press reports. “Apple has yielded its position as the world’s most valuable publicly traded company to Exxon Mobil Corp.”
“Apple is expected to post its first year-over-year earnings decline in 10 years, a big comedown for a company that has been on an incredible tear of innovation and money-making,” AP reports. “Sales are still growing, but its margins are shrinking. That’s both because of the company’s stated strategy of producing the best devices it can, without cost-saving shortcuts, and because it’s undercutting sales of its full-size iPad with the cheaper, lower-margin iPad Mini. In the longer perspective, investors are starting to seize on the fact that the company hasn’t launched a ground-breaking new product like the iPhone or iPad since 2010, the year before CEO Steve Jobs died. They’ve pulled out of the stock this winter, sending the shares down more than 40 percent to levels last seen in 2011.”
AP reports, “Analysts, on average, expect earnings of $10.03 per share on revenue of $42.45 billion, according to FactSet. Apple has said it expects revenue of $41 billion to $43 billion. It had a long tradition of low-balling forecasts, but has signaled that its new forecasts are more realistic. In the same period a year ago, Apple earned $11.6 billion, or $12.30 per share, on $39.2 billion in revenue.”
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All now is bad bad bad , after 23th , wow wow wow
Classy comment. Not.
unfortunately, the recent trend seems to be drop, drop, drop after the quarterly results meeting.
on the downside, I don’t think investors are factoring in that Apple has at least a 10 year roadmap, with a lot of cool stuff set aside for the future – stuff we can’t even imagine or know we need.
On the upside, this is the time to get in on the stock purchase. If you haven’t bought any, buy it now or right after the quarterly results meeting. The stock will only go up once the investors realize that Apple has a lot more innovation deep in their R & D labs.
Revenue is higher, earnings maybe a little lower.
New product cost from Fall.
So how is 43 compared with 39,2 a drop year over year?