Analysts Predict Apple Will Report Single-Digit Earnings Growth in 1Q 2014

[Constable Odo]

Oh no. A few less billion on top of billion profits.

Sorry, I don't mean to be cynical, but Wall Street can't really expect Apple to continue unparalleled growth EVERY year.

Yes, they absolutely do expect Apple to have unlimited growth just like Google and Amazon have. In theory, Apple could if they'd just use that darn mountain of cash they're sitting on. Apple could practically start a dozen new businesses to increase revenue instead of having that money rotting in a bank collecting 1% interest. Un-freaking-believable.

 

[IJ Reilly]

Apple will likely make shareholders cry tears of blood just like they usually do on earnings because of their insistence on hoarding every penny they make instead of using it to expand into new businesses. Only companies like Google and Amazon go up 10% to 15% on earnings because they're always looking out for their shareholders by trying to get every ounce of value out of the money they make.

Tim Cook makes me sick by smiling and giggling about how Apple did just peachy-dandy selling awesome products while the share price tanks.
Dammit, Cook, get a freaking clue. Wall Street absolutely hates Apple and especially you because you're not one-tenth of the man Steve Jobs was. Google's 3 Stooges of Schmidt, Page and Brin are tearing Apple a new butt canal day in and day out with Android which must be up to at least a hundred million new activations a day.

I'm not a fan of Apple hoarding cash, but this opinion is basically baloney. Stocks go up on earnings reports when they beat expectations, and for no other reason. Apple has failed on that score for about a year now. That is why Wall Street "hates" Apple at the moment.

If Apple truly is a cult of personality and can't be run by anyone but Steve Jobs, then they are truly done, because if you had not noticed already, Steve Jobs is deceased. I don't believe that for a minute, but you are welcomed hold a wake if that makes you feel more complete as a human being.

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Yes, they absolutely do expect Apple to have unlimited growth just like Google and Amazon have. In theory, Apple could if they'd just use that darn mountain of cash they're sitting on. Apple could practically start a dozen new businesses to increase revenue instead of having that money rotting in a bank collecting 1% interest. Un-freaking-believable.

So, just spend it? Does it matter how they spend it?

 

[Rogifan]

Apple will likely make shareholders cry tears of blood just like they usually do on earnings because of their insistence on hoarding every penny they make instead of using it to expand into new businesses. Only companies like Google and Amazon go up 10% to 15% on earnings because they're always looking out for their shareholders by trying to get every ounce of value out of the money they make.

Tim Cook makes me sick by smiling and giggling about how Apple did just peachy-dandy selling awesome products while the share price tanks.
Dammit, Cook, get a freaking clue. Wall Street absolutely hates Apple and especially you because you're not one-tenth of the man Steve Jobs was. Google's 3 Stooges of Schmidt, Page and Brin are tearing Apple a new butt canal day in and day out with Android which must be up to at least a hundred million new activations a day.

Geez dude your constant ranting is getting old. It's not Tim a Cook's fault that you bought high and got burned. If you think Google and Amazon are so freaking amazing, get out of Apple and put your money there instead. Just don't come crying when those bubbles burst.

 

[FloatingBones]

Apple is not, however, expected to return to the 50% growth it achieved between 2010 and 2012.

You should have said something far stronger than that. Absolutely nobody is predicting 50% earnings growth this quarter.

Whatever it is the stock will go down.

What specific prediction are you making? Are you saying -- categorically -- that the stock price will decline from close today to the open of the market tomorrow? Something else? Predictions like this are spectacularly worthless unless they are specific.

 

[IJ Reilly]

What specific prediction are you making? Are you saying -- categorically -- that the stock price will decline from close today to the open of the market tomorrow? Something else? Predictions like this are spectacularly worthless unless they are specific.

Forget specific, I think they should come with a money-back guarantee.

 

[2457282]

Don't know where the numbers are going to fall, but it seems everyone agrees it was a good quarter. There are always small tidbits from these earnings calls, but I doubt we will hear anything that indicates new product direction or the timing of releases for anything. So I am interested to see just how many iWhatevers were sold, but not looking for any major revelations about Apples future.

 

[wizard]

Did somebody get up on the wrong side of the bed this morning.

Apple will likely make shareholders cry tears of blood just like they usually do on earnings because of their insistence on hoarding every penny they make instead of using it to expand into new businesses.

Apple has bought into many business this year and has successfully scaled the startup of others to give us things like the A series processors. By the way Apple created the tablet market as a viable business, if that isn't expansion then what are all of those millions in additional sales that wouldn't be there without a tablet?

Only companies like Google and Amazon go up 10% to 15% on earnings because they're always looking out for their shareholders by trying to get every ounce of value out of the money they make.

Baloney.

Tim Cook makes me sick

Actually I think you are sick and just find it useful to blame Cook. Cook is doing fine and frankly was running Apple well before Jobs left.

by smiling and giggling about how Apple did just peachy-dandy selling awesome products while the share price tanks.

Who is to blame for that? Shouldn't your anger focus on the speculators and manipulators that use Apple for their own interests? Then again maybe you are one of those manipulators. Whatever the case the fact remains Apple is doing fine as a business.

Dammit, Cook, get a freaking clue. Wall Street absolutely hates Apple and especially you because you're not one-tenth of the man Steve Jobs was.

Again more ignorance, Apple and Wall Street have never really seen eye to eye so to speak. It has nothing to do with Jobs, Cook or anybody else at Apple. If Wall Street had its way Apple would have been making PC clones 15 years ago.

Google's 3 Stooges of Schmidt, Page and Brin are tearing Apple a new butt canal day in and day out with Android which must be up to at least a hundred million new activations a day.

Who cares? The worry about Android makes no more sense than the worry about PC hardware all those years ago. Besides Apple has about 50% of the smart phone market! that isn't bad at all.

 

[michelepri]

We all know that if it goes on like this Iphones will be out soon. Android phones are becoming very attractive.

 

[wizard]

Yes, they absolutely do expect Apple to have unlimited growth just like Google and Amazon have. In theory, Apple could if they'd just use that darn mountain of cash they're sitting on. Apple could practically start a dozen new businesses to increase revenue instead of having that money rotting in a bank collecting 1% interest. Un-freaking-believable.

If only you knew what you are talking about!

 

[sransari]

It's all just a betting game based on "analyst expectations." If Apple makes $12 BILLION in 3 short months vs a $13 BILLION expectation, long investors will lose money and short investors will make money. How is that investing in any sort of the sense? A company you own a share of makes $12B and you LOSE money? Just bet on roulette and quit wasting everyone's time. I presume investing is more popular since it's the only legal online gambling platform.

 

[Rogifan]

People keep saying Apple needs to do a big acquisition. Jim Cramer over at CNBC keeps pushing Apple to buy Twitter or Netflix. Can someone explain how Apple was able to become the most valuable publicly traded company in the world without a large scale acquisition? Apple's largest acquisition was NeXT for around $400M.

I'd rather see Apple spend their cash on the supply chain side and targeted acquisitions to fill areas of weakness. How often do large scale acquisitions work out that well anway? AOL Time Warner was a disaster. HP and Compaq pretty much too. I doubt Google's valuation is where it is today because they spent $12B on Motorola Mobility. And did Microsoft's acquisition of Skype really do anything for that stock?

 

[osx11]

The executive team cares unless they wish to be unemployed.

Would firing Apple's executive team be of any help to anyone?

Look, I studied Economics and I know my fair share of these things. Having said that, I don't own any stocks but I just find it funny when investors complain that their investment isn't making a desired return. It's called risk! Investors like to oversee this and think they are entitled to 20% growth every year. Well, guess what, any investment has it's fair share of risk and that's part of life.

At the end of the day, Apple is an extremely successful company with over $120,000,000,000.00 in Cash. It's the company with the highes market-cap worldwide. It's selling iPhones and iPads with exponential growth. They are making an insane amount of profit every quarter. If this isn't enough to move the stock price higher then that's life. Not sure a change of leadership would make a difference.

Lastly, Apple is a very risky company in which to invest because they don't operate like a typical company. Apple DOES NOT care about market share. Most comparable companies do. Apple DOES NOT care about selling the most of a product type. Most (if not all other) companies do. You see, Apple is more than a traditional money making machine. They have their own opinion and philosophy. Product-wise, Apple is an amazing company. In terms of investing, it's not fun. Their secretive way of doing business probably drives investors nuts. But that's the way it is.

 

[gnasher729]

Unless the subject is Amazon, then it seems to be just fine that they've never made money...

Just saying: I'm hearing stories that Amazon is keeping profits down artificially by setting up more and more infrastructure. If you have a billion dollars that could have been profits, and then buy a billion dollar warehouse, then poof! and the profits are gone. At least depending on your accountants work. If anyone is an expert in this, they are welcome to reply.

 

[TallManNY]

Who cares?


The funny thing is that Apple doesn't really care about their stock price. Of course they have to act like they feel bad for investors and they try to please them. Ultimately, it's the greedy and unrealistic investors who saw the iPod, iPhone, iPad and thought this trend would continue forever.

Apple makes great products. But they don't make many of them. If investors would realize this reality, then we would avoid this whole "apple is doomed" idiocy.

Considering all of upper management has the vast majority of their personal wealth in vested and unvested Apple stock, I suspect that Apple does care quite a bit about its stock price.

 

[IJ Reilly]

People keep saying Apple needs to do a big acquisition. Jim Cramer over at CNBC keeps pushing Apple to buy Twitter or Netflix. Can someone explain how Apple was able to become the most valuable publicly traded company in the world without a large scale acquisition? Apple's largest acquisition was NeXT for around $400M.

I'd rather see Apple spend their cash on the supply chain side and targeted acquisitions to fill areas of weakness. How often do large scale acquisitions work out that well anway? AOL Time Warner was a disaster. HP and Compaq pretty much too. I doubt Google's valuation is where it is today because they spent $12B on Motorola Mobility. And did Microsoft's acquisition of Skype really do anything for that stock?

Totally agree. All of these suggested acquisitions are random. I've heard everything from Adobe to Yahoo suggested as potential targets for Apple, but nobody can explain why Apple would want to own any of them. As an investor, you only beg for this type of move if you want to see your stock go down, down, down. Investors hate these mergers and acquisitions because they rarely add value and are often total disasters.

 

[osx11]

Considering all of upper management has the vast majority of their personal wealth in vested and unvested Apple stock, I suspect that Apple does care quite a bit about its stock price.

What difference does it make if you're worth 3 billion or 7 billion? At the end of the day, who cares?

 

[TallManNY]

Just saying: I'm hearing stories that Amazon is keeping profits down artificially by setting up more and more infrastructure. If you have a billion dollars that could have been profits, and then buy a billion dollar warehouse, then poof! and the profits are gone. At least depending on your accountants work. If anyone is an expert in this, they are welcome to reply.

It isn't artificial. Amazon is still trying to grow. So yes they take their cash flow and they keep putting it into the business. Yes, that results in there not being any profit.

If Amazon didn't, then the cash would either sit in a pile (like Apple) or it would have to be sent out in the form of dividends or stock buybacks. Amazon is instead investing in their growing business.

 

[gnasher729]

People keep saying Apple needs to do a big acquisition. Jim Cramer over at CNBC keeps pushing Apple to buy Twitter or Netflix. Can someone explain how Apple was able to become the most valuable publicly traded company in the world without a large scale acquisition? Apple's largest acquisition was NeXT for around $400M.

Netflix is a direct competitor, so (unlike the trumped-up ebook case) this could cause some real anti-trust worries. Apple could have the same benefits a lot cheaper by integrating Netflix better into iTunes.

With Twitter, Facebook etc. I'd say they have a very high valuation with very little profit, and that is totally contrary to anything that Apple does.

 

[TallManNY]

What difference does it make if you're worth 3 billion or 7 billion? At the end of the day, who cares?

As evidenced by the actions of the mega rich over the centuries, many of them care quite a bit about the difference between different levels of mega wealth.

Why does Warren Buffet still work? He can't spend what he has and that has been the case for the last twenty years. But he still works and works hard.

 

[IJ Reilly]

Just saying: I'm hearing stories that Amazon is keeping profits down artificially by setting up more and more infrastructure. If you have a billion dollars that could have been profits, and then buy a billion dollar warehouse, then poof! and the profits are gone. At least depending on your accountants work. If anyone is an expert in this, they are welcome to reply.

Plowing profits back into new growth is not artificial, it's capitalism. But at some point a bottom line (earnings) has to appear, or all that top line growth (revenue) will be of little use.

 

[Tech198]

You bunch of cowardly cats.... Apple is not doomed

Not yet anyway... But Apple can't expect to be in front always can they ? I mean just think "Apple being the only company ahead" How boring would that be... *yawn*

And yes, the sky is falling.... we better run from that too.

 

[gnasher729]

It isn't artificial. Amazon is still trying to grow. So yes they take their cash flow and they keep putting it into the business. Yes, that results in there not being any profit.

Well, if you buy stuff for $10 bn and sell it for $10 bn, you have no profit. If you buy stuff for $9 bn and sell it for $10 bn, you have a billion profit. If you buy stuff for $9 bn, sell if for $10 bn, and build a billion dollar warehouse and claim you have no profit, I'd say that is "keeping the profits artificially low". Whether you can legally claim to have no profits (and probably pay no taxes on profits), I don't know.

 

[IJ Reilly]

Well, if you buy stuff for $10 bn and sell it for $10 bn, you have no profit. If you buy stuff for $9 bn and sell it for $10 bn, you have a billion profit. If you buy stuff for $9 bn, sell if for $10 bn, and build a billion dollar warehouse and claim you have no profit, I'd say that is "keeping the profits artificially low". Whether you can legally claim to have no profits (and probably pay no taxes on profits), I don't know.

Already pointed out twice, but to make it again, reinvesting in growth is not artificial. The other point is it can't go on forever.

 

[gnasher729]

Totally agree. All of these suggested acquisitions are random. I've heard everything from Adobe to Yahoo suggested as potential targets for Apple, but nobody can explain why Apple would want to own any of them. As an investor, you only beg for this type of move if you want to see your stock go down, down, down. Investors hate these mergers and acquisitions because they rarely add value and are often total disasters.

I was once told by a rather wise (and very successful) man: "If the analysts tell you that the money your company has in the bank is a problem, I can tell you that it is a very good problem to have".

All the purchases that Apple made have been made to become a better Apple, Inc. How would owning Netflix or Twitter (or Adobe or Yahoo) make Apple a better Apple? It wouldn't.

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Already pointed out twice, but to make it again, reinvesting in growth is not artificial. The other point is it can't go on forever.

There's nothing wrong with reinvesting, quite the opposite. What I'm saying that if this happens, then the investment makes the company worth more money, so it should be counted as profit.

 

[SusanK]

Would firing Apple's executive team be of any help to anyone?

AAPL fell to $385.10 4-19-13. Buyback announced. Somebody cares.