“Over the past two weeks eight Apple sell-side analysts have lowered their iPhone, revenue and EPS projections and/or price targets,” Chuck Jones writes for Forbes. “Their notes are the main reason Apple’s shares have been under pressure and reached what I believe is a buying opportunity. ”
“I remember a CFO of a large software company telling me that every quarter is the most important one ever to analysts, so in reality don’t get too worked up over it (unless there is a material difference to expectations),” Jones writes. “One key ingredient to investing in a company is that the CEO can manage for the future and make the right decisions. I believe Tim Cook is the right person to do this for Apple.”
“I have averaged the iPhone unit estimates from the 10 sell-side analysts I have recently received reports. Their average December quarter iPhone estimate is 75.4 million with a range of 74 to 78 million and the March quarter average is 55.3 million with a range of 52 to 63 million,” Jones writes. “As a point of reference as of Sunday, December 27, Yahoo Finance had Apple’s fiscal 2016 EPS estimate at $9.74 and fiscal 2017 at $10.70. It is showing Apple’s revenue to be $242 and $257 billion in fiscal 2016 and 2017, respectively.”
Read more in the full article here.
MacDailyNews Take: Estimates of $242 billion in revenue in 2016 and $257 billion in 2017. Just let that sink in.
SEE ALSO:
Apple crashes into bear market: Poof! $150 billion up in smoke – December 18, 2015
RBC cuts Apple price target to $140, citing iPhone supply chain concerns – December 17, 2015
Piper Jaffray: Individual component suppliers are not indicative of the health of Apple’s overall iPhone business – December 16, 2015
Apple stock slumps on Dialog Semi warning – December 15, 2015
Analysts baselessly warning of ‘Peak iPhone’ allow Apple to buy back even more outstanding shares – December 15, 2015
Apple suppliers hit by Morgan Stanley’s iPhone sales forecast – December 15, 2015
Some analysts see Apple iPhone sales seen turning negative in 2016 – December 14, 2015
Cramer: Apple shares may not have momentum but they’re cheap – December 14, 2015
Morgan Stanley slashes Apple price target by 12%; shares fall in pre-market trading – December 14, 2015
Apple stock slides on Credit Suisse claims of iPhone component order cuts, weak iPhone 6s demand – December 2, 2015
UBS analyst’s latest ‘research’ note on Apple is just another ‘actionable’ note and should be totally ignored – November 16, 2015
Apple shares continue to get slammed on commission/bonus related ‘actionable research’ – November 10, 2015
Apple lower after Credit Suisse notes substantial supply-chain cuts – November 10, 2015
If only the annasists have to live or die by their records and credibility…
That would be delightful Schadenfreude. 😀
Analysts can bring a bad company down for good reasons. When analysts bring a good company down for bad reasons it is a buying opportunity. Tim, buy buy buy. Bring my share of the company up!
Why don’t the analysts go after Amazon, Alphabet, Netflix or Microsoft? Why is Apple the one profitable company being attacked as a dying company? Because Apple’s leadership is like whipped cream. All air and no real substance. Jeff Bezos would never put up with the kind of crap Apple goes through. Even newbie Nadella isn’t being made a fool out of like Tim Cook is. Apple is the shorter-seller’s delight. No one is getting poor betting against Apple. The analysts know they can get away with anything they want by bashing Apple and not get one ounce of comeuppance.
Honestly, Tim Cook should have realized a long, long time ago that iPhone sales would hit a wall and he could have prepared for it. Now Apple’s iPhone business is said to be at the edge of a cliff, ready to fall into a deep, deep chasm while all of its rivals are wearing jet packs with afterburners. I really believe in Apple as a company but there was no reason for Apple to be caught with its pants down in a raging blizzard.
It’s because they know Apple shares will start to pop back up after jan 1st, due to the company’s unbelievably strong fundamentals.
If analysts piled on to an Amazon or Microsoft at year-end, the share price might never return.
Really? The stock hasn’t done anything for over a year. Great company. Bad investment. Wake up.
You lost me on the second bit there. Seems like a 180 from your first statement. I think most people here know “analysts” predicting the fall from grace is nothing new. I won’t even list the reasons why they do this. One thing is true, if you never stop saying it EVENTUALLY they can say, “I told you so!” Even if it’s 15 years down the road.
(O_O) macnificentseven48 said WAT?!
Tim Cook should have realized a long, long time ago that iPhone sales would hit a wall
So you want to live in FAERIE LAND with the analcysts and PRETEND there’s a mythological WALL Apple is going to plow into and die? Instead, I’m expecting to enjoy Apple continuing to eat Android market share alive while Android victims run screaming for something seriously safe, functional and user-friendly, that being the iPhone.
Too much spiked eggnog, dear fellow. Much too much.
All the technicals, fundamentals, and analyses are a total waste of time when the problem isn’t any of that. Until THAT problem is solved, nothing is going to change.
And pay no attention to the planned worldwide depression/recession for 2016 – which will affect Apple.
“MacDailyNews Take: Estimates of $242 billion in revenue in 2016 and $257 billion in 2017. Just let that sink in.”
Estimates? Guesses? What ever – it’s not real. Also, there’s a sucker born every minute. Apple fanboys would buy a turd if it had a shiny Apple logo.
I don’t know. I think I’d rather judge a company on the actual profits it makes on it’s goods and services rather than spend too much time looking at the value of its shares. We’ve all seen “miracle startups” with share prices going through the roof only to see said startups have the carpet pulled from under them when they don’t deliver the promised goods.
Unfortunately if you do that you are making your stock purchase decisions not on what you believe the future will be for the company but rather their past record. Good for credit worthiness, not so much for stocks..