Apple’s $37.5 billion Q413: What the analysts are saying

“Once they wrapped their minds around the impact of deferred revenue on next quarter’s gross margins, analysts came away from Monday’s earnings report feeling mostly positive about Apple’s (AAPL) prospects for 2014,” Philip Elmer-DeWitt reports for Fortune.

P.E.D. reports, “A few even raised their price targets.”

Revenue Growth Trajectory Surprising to the Upside. Our CY2014 revenue and FCF estimates move higher while EPS remains unchanged due to deferral of gross profit dollars on the back of free software updates. The stronger revenue growth inflection, bullish management tone, and improving like-for-like gross margins are all bullish, in our view… Whereas two quarters ago Apple CEO, Tim Cook, set the tone by acknowledging Apple had not delivered on everyone’s expectations, yesterday’s call focused on confidence in the future including a strong holiday season. Management continues to highlight innovation both in current and new product categories, examples of which could include iWatch and iTV. – Katy Huberty, Morgan Stanley (Raises price target to $585 from $540.)

Several more reactions from analysts in the full article here.

Related articles:
MacDailyNews presents live notes from Apple’s Q413 Conference Call – October 28, 2013
Apple beats street with revenue of $37.5 billion on quarterly record sales of 33.8 million iPhones – October 28, 2013


      1. …except if Apple was dishonest or misleading, they would be in front of a judge, whereas these so-called analysts just move on to the next victim. There should be some accountability, but the fine print is where these guys live and breathe – read it sometime – their guidance involves no liabilty on their part, meanwhile their companies make money whichever way the market moves. Too bad critical thinking and common sense are both becoming oxymorons in the age of FOX/MSNBC and Wall Street “pundits” (sounds like dumb tits don’t it?).

    1. Absolutely strange how Wall Street mistreated AAPL just like a stepchild, Apple should move to Germany and Japan, those countries would love, respect and proud of Apple and relist there. Cancel the mothership, pack all up and leaving the US, but keep designing here.

  1. I guess I’m guilty of “flocking” to the latest analyst’s postings on this website because it’s like watching a movie that’s so badly done I can’t tear my eyes away from it.

  2. When did Apple begin revenue deferral?

    It should only matter for the first couple of years. The lower revenues are no longer an issue as previous deferrals are put on the books.

    1. We’ve already been through revenue deferral with the accounting for iPhones and their free IOS upgrades. The analysts misunderstood that one too.

      You might hope that this second time around, people might understand it a little better.

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