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January 18, 2007
Apple Misses. IBM On Deck
The earnings forecast from Apple disappointed investors, bringing the tech sector down. Apple (AAPL) traded last at $90.37 -$4.58 or -4.82%. Although profit soared past expectations, its forecast for the current quarter fell shy of analyst estimates. The company sees revenue of $4.8B to $4.9B, and profits of 54-56 cents a share; that’s below the Street consensus of $5.22B and 60 cents a share. Could Apple's CFO just be playing it conservatively? UBS thinks so and raised its price estimate for Apple Computer to $124 by UBS.
We can't blame Apple too much. Revenue in the quarter was $7.1B, well above the Street consensus $6.4B. EPS was $1.14 a share, compared to the consensus estimate of 78 cents. Aple sold 1.6M Macs in the quarter, lighter than some forecasts; but it sold 21M iPods.
In tech:stocker's view, this is a great day to buy Apple as wall street is bound to take a second look at killer unit sales and wonder what it was thining.
At the end of the day, IBM will report its earnings. shares have been on a consistent run since last quarter's impressive earnings. The stock has climbed more than 16% since reporting its third-quarter results, with IBM shares continuing recently to reset 52-week highs, closing over the $100 mark earlier this week.
Posted by Paul at January 18, 2007 06:54 PM
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