"Apple revenue falls short again, iPhone sales disappoint"

sdilley14 · Jan 23, 2013

http://www.reuters.com/article/2013/01/23/us-apple-results-idUSBRE90M1HD20130123

Subject line is the headline of the article I have posted above.

I guess I just don't understand it. Record quarter for revenue, record quarter for gross earnings, record quarter for iPhone sales (47+ mil), record iPad sales (22+ mil), signifcant improvements over the same quarter last year despite having one less week accounted for in this year's quarter, still improving at a torrid pace, and still the results are categorized as "disappointing". It seems really ridiculous to me. I know anaylsts have been used to meteoric growth quarter after quarter for the last few years, but at what point do they start putting projections and expectations in line with what can be "reasonably" expected? What a kick in the junk to release spectacular results like this, only to see your stock take a 6% hit. :S

Simplicated · Jan 23, 2013

Analysts should all go to hell.

sdilley14 · Jan 24, 2013

I can pretty much agree with that. I just think it's a joke that in this still floundering economy, when the most valueable company in the world releases record results, analysts can still call it "disappointing" and the stock takes a 10% hit. Ridiculous.

zioxide · Jan 24, 2013

sdilley14 said:
I can pretty much agree with that. I just think it's a joke that in this still floundering economy, when the most valueable company in the world releases record results, analysts can still call it "disappointing" and the stock takes a 10% hit. Ridiculous.

In 6 months the stock will be right back up there again. It goes in cycles. When it goes up like crazy, people sell off to make money and it goes back down. Then people buy it up cause it's cheap and it goes back up.

Worrying about day to day fluctuations because of some hack analyst is a waste of time.

sdilley14 · Jan 24, 2013

zioxide said:
In 6 months the stock will be right back up there again. It goes in cycles. When it goes up like crazy, people sell off to make money and it goes back down. Then people buy it up cause it's cheap and it goes back up.

Worrying about day to day fluctuations because of some hack analyst is a waste of time.

I agree that the stock rises and falls due to profit taking after quick spikes in the price and things like that. But this is hardly a day to day fluctuation. Today's $60 drop is a culmination of a steady drop over the last several months.

This was the 4th most profitable quarter, EVER, by ANY company...EVER...and it is still viewed as tepid and categorically disappointing. Just seems ridiculous to me.

jetlagged · Jan 24, 2013

Yeah i'm down two 15" rMBP worth because of the selloff. I'd like to buy more now that's it's so cheap, but will be keeping a close watch on it for now. no point in selling it now. however if it goes back up and recoups the money i have lost, i will definitely sell it and avoid the stock. it's been good, it's been fun, but time to move on and accept that apple isn't the same without jobs.

jon3543 · Jan 24, 2013

sdilley14 said:
This was the 4th most profitable quarter, EVER, by ANY company...EVER...and it is still viewed as tepid and categorically disappointing. Just seems ridiculous to me.

Look at the story the media continues to tell:

http://www.forbes.com/sites/ericsavitz/2013/01/24/microsoft-fy-q2-adjusted-eps-beats-street-estimates
"One day after a disastrous earnings report from Apple, Microsoft this afternoon reported results for its fiscal second quarter ended December 31 that were slightly ahead of Street expectations."

Oh, the humanity! It was a disaster!

sdilley14 · Jan 24, 2013

jon3543 said:
Look at the story the media continues to tell:

http://www.forbes.com/sites/ericsavitz/2013/01/24/microsoft-fy-q2-adjusted-eps-beats-street-estimates
"One day after a disastrous earnings report from Apple, Microsoft this afternoon reported results for its fiscal second quarter ended December 31 that were slightly ahead of Street expectations."

Oh, the humanity! It was a disaster!

LOL, wow. That is flat out ridiculous. Just because AAPL didn't have another quarter of 30% overall growth, it's a disaster. They sold 47 million iPhones and 22 million iPads in one quarter for christ's sake!

jon3543 · Jan 24, 2013

sdilley14 said:
LOL, wow. That is flat out ridiculous. Just because AAPL didn't have another quarter of 30% overall growth, it's a disaster. They sold 47 million iPhones and 22 million iPads in one quarter for christ's sake!

And it's not even a blogger. It's "Eric Savitz, Forbes Staff". And continue reading to see how non-judgmental the rest of his Microsoft article is towards Microsoft.

sdilley14 · Jan 24, 2013

jon3543 said:
And it's not even a blogger. It's "Eric Savitz, Forbes Staff". And continue reading to see how non-judgmental the rest of his Microsoft article is towards Microsoft.

I just went back and read the article. Wow...they beat the meager Street expectations by $500m in revenue and one cent EPS. MS gross revenue was $22m...Apple's was $54m. So stupid to think that success and "disaster" are gauged on where a company performs in relation to "Street expectations" as opposed to actual figures.

TheHateMachine · Jan 25, 2013

How much growth did Apple have last quarter over the quarter before? What was the Profit to Revenue ratio from last quarter compared to the latest? How did their margins change? How did they change how new guidance will be set and reported? What is the guidance for next quarter?

Find out the answer to these and find out why the market values the stock less.

It isn't all revenue, profit and market cap folks. Other things do affect the outlook.

PracticalMac · Jan 25, 2013

Stock is close to where AAPL was 1 year ago.

I think it is a run of profit taking, and the "poor" earning report was just an excuse.

Very likely it will zoom back up.

sdilley14 · Jan 29, 2013

Grabbed this from an article about Amazon's #s they just released. Kinda funny how one company can tank because they miss analysts expectations, while another jumps up 10%...

Amazon sold many more things in the fourth quarter while barely bothering to eke out a profit.

Revenue went up 22 percent to $21.27 billion, while earnings per share fell to 21 cents from 38 cents in the fourth quarter of 2011.

In both cases, the numbers were less than expectations. Analysts had predicted revenue of $22.2 billion and 27 cents a share.

Despite this apparent bad news, investors were unfazed. The stock rose $24 a share, or 9 percent, in after-hours trading.

Makes complete sense... :S

jon3543 · Jan 29, 2013

AMZN is Bizarro AAPL.

Rogifan · Jan 29, 2013

sdilley14 said:
Makes complete sense... :S

I'm sure someone will be here to tell us why it makes sense.

. Although someone on Bloomberg said their stock is a bit "puffy". ROTFLMAO.

jon3543 · Jan 29, 2013

All one can do is laugh at headlines like this one from Reuters:

Amazon shares set record after strong quarterly profit

The first part is true enough (in AH, anyway), but the last part is a flat lie, both in what it says and what it leaves out. Then there's the article itself.

Rogifan · Jan 29, 2013

jon3543 said:
All one can do is laugh at headlines like this one from Reuters:

Amazon shares set record after strong quarterly profit

The first part is true enough (in AH, anyway), but the last part is a flat lie, both in what it says and what it leaves out. Then there's the article itself.

I saw that and had to laugh. Stock up 9% after hours. Wall Street and the media certainly drinking the Bezos kool-aid.

Appl3FTW · Jan 30, 2013

they did not disappoint... economist have this crazy expectations for apple and it's like setting apple to fail. oh well apple is better than androids anyway.

AngryGerbil · Jan 30, 2013

TheHateMachine said:
How much growth did Apple have last quarter over the quarter before? What was the Profit to Revenue ratio from last quarter compared to the latest? How did their margins change? How did they change how new guidance will be set and reported? What is the guidance for next quarter?

Find out the answer to these and find out why the market values the stock less.

It isn't all revenue, profit and market cap folks. Other things do affect the outlook.

Finally, someone that gets it.

jon3543 · Jan 30, 2013

jon3543 said:
Look at the story the media continues to tell:

http://www.forbes.com/sites/ericsavitz/2013/01/24/microsoft-fy-q2-adjusted-eps-beats-street-estimates
"One day after a disastrous earnings report from Apple, Microsoft this afternoon reported results for its fiscal second quarter ended December 31 that were slightly ahead of Street expectations."

Oh, the humanity! It was a disaster!

I just had to check what the author, "Eric Savitz, Forbes Staff", had to say about Amazon:

Amazon Shares Spike As Street Applauds Better Margins

Amazon.com shares are rally smartly Wednesday morning after the online retail giant late yesterday posted an unusual Q4 report, which featured revenues and profits that fell short of Street estimates, but gross margins that topped Street expectations by several percentage points.

The article is mostly very matter-of-fact and non-judmental (except in positive ways), but it omits mention of the terrible guidance, headwinds like the increasing push for sales tax collection in more and more states, the refusal of Amazon to report Kindle sales, etc. My favorite part is again in bold; while he characterized Apple's mind-blowing earnings report as "disastrous" (in a Microsoft article, no less), Amazon's genuinely horrible report was merely "unusual", and it sparked a "smart rally". Interesting choice of words, "smartly".

MacNut · Feb 2, 2013

Stock analysts, speculators and future sellers should all be jailed and the practice made illegal. I don't see how it is any better than insider trading. It is all stock manipulation.

mrsir2009 · Feb 2, 2013

It's amazing that Apple is growing at all, considering that the vast majority of people in the west who are going to buy an iPhone would already have one.

throAU · Feb 12, 2013

sdilley14 said:
I can pretty much agree with that. I just think it's a joke that in this still floundering economy, when the most valueable company in the world releases record results, analysts can still call it "disappointing" and the stock takes a 10% hit. Ridiculous.

"Analysts" have vested interests.

What's to say said analyst doesn't want to influence the price down so he can buy a sure thing at a discount?

sdilley14 · Feb 12, 2013

throAU said:
"Analysts" have vested interests.

What's to say said analyst doesn't want to influence the price down so he can buy a sure thing at a discount?

I have always considered that a possibility. Actually, I think it is less of a possibility and more of a certainty.

JoeG4 · Feb 16, 2013

Simplicated said:
Analysts should all go to hell.

Quoted for truth.

"Apple revenue falls short again, iPhone sales disappoint"

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