“This summer’s earnings season has disappointed thus far, and investors have reacted in kind,” David Weidner writes for MarketWatch. “That seems to be the narrative this week after companies including Apple Inc. and Microsoft Corp. reported lower-than-expected results. The sky is falling, and so is the S&P 500. The index is down about 1% this week.”
MacDailyNews Note: On Tuesday, Apple reported all-time record quarterly results that exceeded both the company’s guidance (revenue between $46 billion and $48 billion) and analysts’ consensus estimates for both EPS ($1.85 actual vs. $1.81) and revenue ($49.60 billion actual vs. $49.31 billion).
“Apple is now a Dow Jones Industrial Average component, which means it’s pricing tends to send the index — an index in which it’s a component, really — into an ascent or descent. But take a deep breath. Apple is just one company, and it continues to grow. Even if that growth is slowing a little,” Weidner writes. “Of the 61 companies that reported earnings in the prior week, 72% reported better-than-expected earnings and more than half, 56%, reported revenue and sales beyond the estimates, according to FactSet. That was 12% of the S&P 500.”
Weidner writes, “In short, the numbers suggest that, except Apple (and Apple is perhaps one of the few companies where expectations were set too high), the overall earnings performance of S&P 500 companies was actually better than expected.”
Read more in the full article here.
MacDailyNews Note: On Tuesday, Apple reported all-time record quarterly results that exceeded both the company’s guidance (revenue between $46 billion and $48 billion) and analysts’ consensus estimates for both EPS ($1.85 vs. $1.81) and revenue ($49.60 billion vs. $49.31 billion).
We deal in facts here. Not disinformation to fuel stock market scams. We’re not participating in the big lie.
SEE ALSO:
Wall Street blew it: Apple’s stock slide isn’t the company’s fault – July 22, 2015
Nasdaq retreats amid tech selloff after Apple’s record results – July 22, 2015
Apple earnings: Good is never good enough – July 22, 2015
Cowen downgrades Apple on record quarterly earnings results – July 22, 2015
For Apple, more success raises more questions – July 22, 2015
Sorry, haters: Tim Cook confirms Apple Watch sales are much better than you think – July 22, 2015
Here’s how many Apple Watch units Apple sold – July 22, 2015
Drudge screams: ‘APPLE FUTURE QUESTIONED’ – July 21, 2015
Apple poised for $50 billion valuation loss after posting ‘disappointing’ record earnings – July 21, 2015
Apple shares plunge after ‘disappointing’ record third quarter results – July 21, 2015
MacDailyNews presents live notes from Apple’s Q315 Conference Call – July 21, 2015
Apple pulverizes the Street with record third quarter results – July 21, 2015
Why does Apple (or any company for that matter) bother to provide guidance? The hucksters have their own designs.
Wall Street expectations for AMZN was (-.14) loss
AMZN reported +.19 gain – great work on the numbers Wall Street anaylsts, very accurate – off by 250%, its a clown game all
Amazon is simply the darling of wall street. Go figure. Maybe it’s Bezos persona.
WS are in love with internet stocks.
Apple’s bump will come. Either in the next three months or end of year.
There’s no guarantee of any Apple bump. If it’s really a manipulated market, Apple can easily be held down and Amazon will continue to make Apple look stupid. Wall Street can assign any value on any company it wants using a multiple that doesn’t come close to actual company wealth. If you’re smart or lucky you can make good money from a failing company. I choose to stick with a fundamentally safe company like Apple and take what it gives me.
As far as any company providing guidance it would seem like a waste of time. It’s up to analysts to decide whether a company is sandbagging or not. Analysts make the decision if a company’s expectations are too low or too high and adjust them accordingly. Besides, Apple’s share price goes down whether the company beats expectations or not. For Apple shareholders it can easily be a no-win situation if that’s the way Wall Street wants it to be. The’ve already decided that Jeff Bezos is a god and Tim Cook is a loser.
Apple shouldn’t be in the situation that it is in, but it is. Greed can never be satisfied no matter how much a company makes. Apple has obviously acquired the wrong investors or they have a bone to pick with Tim Cook.
The Summer Slump and Autumn Bounce happens to Apple every year. Every Year!
If the these guys were ranking college football teams, they could cause a team to not be ranked that has never lost game if they did not meet their expectations.
Wall Street seems to be playing point spreads and not team wins and it’s a very poor situation for Apple shareholders. With standard accounting practices you can’t make a company more valuable than it actually is without cooking the books. However, Wall Street is run using a multiple that may or may not reflect the true value of a company. It’s just smoke and mirrors.
Apple typically exceed their own (admittedly probably cautious) predictions, but don’t meet the wildly inaccurate expectations of analysts. Apple are clearly doing their job exceedingly well. The analysts clearly have no clue what they’re doing. Who should you listen to?
I would listen to any stocks that give me great returns. Wall Street’s already speaking loud and clear that “NOTHING APPL DOES IS NOT GOOD ENOUGH”.
What do you really mean with that double negative? Everything Apple does is good enough?
The “disappointment” is all unfathomably self-inflicted.
This must be about the 20th consecutive quarter where analysts have predicted that iPhone sales have peaked and numbers will start falling.
In reality, it’s Samsung’s sales that are falling, while Apple’s sales are going from strength to strength, making amazing profits too.