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Apple Reports Q4 2010 Profit of $4.31 Billion on $20.34 Billion Revenue, Best Quarter Ever
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How did they miss? Apple Inc. gives no guidance on product lines.
None of the analysts were right. Their predictions were wrong on all four major product lines: Macs and iPhones blew through all predictions. The iPod and iPad were weaker than analyst estimates.
They also smashed through revenue and EPS estimates. Apple's gross margin was just slightly higher than what was given as guidance; that was the only number that was anywhere close.
Apple shocked analysts for this past quarter with their high guidance. I don't know whether the analysts tried compensating for it this time around and that's why Apple appears to be low-balling the earnings number as it had done in the past or if there really is a margin issue that will impede them for the holiday quarter.
Well actually, thats how earnings are judged, by how they compare to analyst expectations.
If they expected 5 million ipads and only 4-something million were sold, thats negative news.
Identity Shift
14 million iPhones!
If you ask a teenager, they will now say that Apple is a cell phone company.
14 million iPhones!
If you ask a teenager, they will now say that Apple is a cell phone company.
stocks go up on continued high growth rate of revenue/profit. At some point the law of large numbers comes in where it's impossible to keep on selling more and more stuff to grow as fast. all of Microsoft's greatest products were released long after the stock peaked.
Exactly - case in point: Microsoft. They've made money hand over fist the past decade bust investment-wise they've been average at best.
Same goes for Walmart - a slightly better investment, but not a big winner in anyone's portfolio.
Hmm iPad sales I predicted they were declining dramatically after the inventory suddenly improved some weeks ago 
The predictions have been well overdone and I think this is going to be a big hit on the stock tomorrow.
The predictions have been well overdone and I think this is going to be a big hit on the stock tomorrow.
91 % increase in iPhone unit sales. Stellar iPod sales. Nice iPad sales. This probably brings us (close) to 130,000 iOS devices.
You are wrong.
Sep Qtr revenue $20.34b
Sep Qtr EPS $4.64
Source: http://www.appleinsider.com/article...s_could_temper_upside_to_apples_earnings.html
Why would there be a $20 downturn? Call me stupid or what not, but such strong numbers should be indicative of strong sales and henceforth would make it obvious to buy more Stock.
Over 9 millions so far for the entire year to date. Analysts in another article were said to have predicted 9.6 mil, so it "fell short"... these are the same analysts that predicted it would sell under 3 million if lucky for the year when asked in February.
With this sales track, it will go over 13 million this year. Especially with Christmas sales... could hit 15 million if WalMart and others are selling it. Whatever the case, it will exceed everyone's expectations when revealed.
That street estimate was as of last Friday, after the end of the quarter.
At the time Apple issued the guidance (July), it was significantly higher than analysts were predicting. That was a shocking change from Apple's past behavior.
http://www.businessweek.com/news/20...as-sales-forecast-tops-analyst-estimates.html
As has been said, the street fears Apple's profits will be down due to margins on iPads and such.
Stock rebounded
So much for "down."
It closed at $318 and dropped $.10 after hours.
Or as The Wall Street Journal reports:
http://blogs.wsj.com/marketbeat/2010/10/18/apple-earnings-crushin-it/
So much for "down."
It closed at $318 and dropped $.10 after hours.
Or as The Wall Street Journal reports:
http://blogs.wsj.com/marketbeat/2010/10/18/apple-earnings-crushin-it/
But Apple and Microsoft are two very different beasts. Look at the brand loyalty and the "cult" around all things Apple. Look how much buzz came from Apple's simple event invitation for next Wednesday...I don't know many companies that can do this.
It just seems stupid to me for people to be selling Apple off like this, especially when they have a big event next week.
I guess this is a good buying opportunity then?
It happens after every Apple Financial release. It us a normal part of the process. I have never seen it go up after an announcement and stay up no matter how good the numbers are. It is mainly due to Apple's guidance as they always shoot low. It will go back up over time though.