Apple Q1 Financial Results Webcast

[macshark]

Merrill analysts upgrades Apple - target $29

Shares of Apple (nasdaq: AAPL - news - people ) were higher after Merrill Lynch reinstated coverage of the computer manufacturer with a "buy" rating and a price target of $29. Merrill Lynch said, "We think Apple has gotten its act together in focusing on core markets, building a mature management team and, most important, innovating again. People will pay more for Porsches, but they have to perform." Merrill Lynch set a 2004 earnings-per-share estimate of 42 cents. It projected that Apple's iPod and iTunes Music Store will account for only 9% of 2004 sales, but said that percentage should grow in later years. "We think iPod's leading position is defendable for perhaps two years and is important to Apple's 'cool' image," the research firm said. Apple, which closed Monday at $23.73, was up 90 cents at $24.63.

 

[macshark]

Apple Computer upgraded by Thomas Weisel

Thomas Weisel upgrades Apple Computer (AAPL) to Outperform from Peer Perform and raises their FY04-05 rev/EPS ests above consensus based on their expectations for accelerating revenue growth, expanding margins, and increasing EPS in 2004; firm expects a long-awaited upgrade cycle for the co as the "switcher" campaign finally pays dividends, says iPods could be a $1 bln biz by FY05, and sees potential upside in G5 for 3-4 qtrs; firm also says valuation is reasonable at 10.3x their CY04 est (using peak operating margins of 8%, stripping out cash).

 

[aswitcher]

Does anyone have any thoughts/quotes from the webcast?

Oops. 13 hours ahead of myself due to time-zone dyslexia.

 

[macshark]

Apple revenue more than $2B, profit 17c per share

CUPERTINO, Calif., Jan. 14 /PRNewswire-FirstCall/ -- Apple® today announced financial results for its fiscal 2004 first quarter ended December 27, 2003. For the quarter, the Company posted a net profit of $63 million, or $.17 per diluted share. These results compare to a net loss of $8 million, or $.02 per diluted share, in the year-ago quarter. Revenue for the quarter reached a four-year high of $2.006 billion, up 36 percent from the year-ago quarter. Gross margin was 26.7 percent, down from 27.6 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter's revenue.

 

[Mantat]

Interesting results.

I just wonder how well they will do during the next quarter. They made a lot of money with all the people switching to the G5, now they will need people to switch from pc to mac to increase their revenu.

They have the momentum, Apple never had that much exposure and respect from the computer industry. I just hope Jobs stop talking about music for a moment and invest some energy into other sphere of computing: games (buy blizard!!!), push more the .mac product by increasing its integration with the rest of the iApps and market a cube replacement.

I think the road ahead is good, lets just hope Jobs doesnt want to take a shortcut!

Its switching time!!!

 

[mproud]

Originally posted by Mantat
Interesting results.

I just wonder how well they will do during the next quarter. They made a lot of money with all the people switching to the G5, now they will need people to switch from pc to mac to increase their revenu.

<snip>

I just hope Jobs stop talking about music for a moment and invest some energy into other sphere of computing: games (buy blizard!!!), push more the .mac product by increasing its integration with the rest of the iApps and market a cube replacement.

<snip>

You're kidding, right?

 

[Mantat]

Nope, I am not kidding...

First .Mac is pure profit for Apple. They just have to make it more usefull so more people pay for it... One way is to allow export from GB to the .mac account. Reducing the cost would also be a good idea...

As buying Blizard or any other established game company, it would allow them to have great game fast on the mac market which is of major importance if you want to fix the reputation of macs as not being good for games.

Cube replacement: I know at least 3 ppl who would buy a mac if it was in a cube form factor. G5 Powermac are too big / expensive for them and they already have a screen. So the cube is the only choice. I am personaly hunting for a old cube that I could upgrade.

Finaly, its a fact that most of the sales of G5 were to old mac users who were waiting for it. The percentage of switchers who got a G5 is very low (they usualy go for a laptop), they need to fix this or the G5 sales wont grow.

So now that I have explained every point in details, tell me where I am wrong... Oh, and please use facts!

 

[Dont Hurt Me]

3.2% marketshare need i say more? pretty hard to go lower. Apple has been doing somethings very wrong but at least they are still operating. Mantat gives one example.

 

[Mantat]

Market share? Do you even know what it means? its the % of computer SOLD not the number used. More than 3% of the population use macs.

Anyways, Apple is now in a very good position to increase it sales: good products, a lot of good press and people have a better opinion of macs. I think we could see a lot of sales this year if apple is aggressive in the consummer market.