Apple’s Q4 miss was a gift for investors, Ticonderoga says

By on Oct 19, 2011 at 9:40 AM
Business October 19, 2011

Apple reported fiscal fourth-quarter earnings on Tuesday evening that missed analyst estimates by a fair margin, due in large part to iPhone sales that fell well below the Street’s consensus. Analysts weren’t expecting iPhone sales to slow at all, but even Apple CEO Tim Cook acknowledged on the company’s earnings call that the overactive hype machine ahead of the company’s October iPhone refresh was largely responsible for the stall. Firms are still bullish on Apple despite the miss, of course, and one analyst views Apple’s fourth-quarter earnings as a “gift” ahead of the holiday season. Read on for more.

Shares of Apple stock dipped more than 7% in after-hours trading following the company’s earnings report Tuesday evening, and Ticonderoga Securities analyst Brian White seems to welcome the slide. “We believe the iPhone pause going into the launch of the iPhone 4S was the culprit for this miss and provides investors with a gift ahead of the holiday season,” the analyst wrote in a note to investors Wednesday morning.

White added that Apple’s guidance for the December quarter is much stronger than usual, likely bolstered by the “resoundingly successful” launch of the iPhone 4S. “Netting this all out, we would be aggressive buyers of Apple this morning as we anticipate a big holiday season for the company and the stock was trading after market at just 8.8x our CY12 EPS estimate (ex-cash).”

“While iPhone 4 sales clearly paused ahead of the new iPhone rollout, the blowout iPhone 4S demand leaves little doubt in our mind that Apple is poised for another blockbuster iPhone product,” White continued. “At the same time, the iPad continues to gain momentum and we believe lower priced point product is on the way in early 2012 as we highlighted during our trip to China, while Apple’s PC market share has room to run.” Apple announced on Monday that it sold more than 4 million iPhone 4S handsets during the smartphone’s opening weekend.

The analyst now expects Apple to report revenue of $37.9 billion and earnings of $9.54 per share in the first fiscal quarter of 2012, and he reiterated a Buy rating on Apple stock with a price target of $666.

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32 Comments

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  • Anonymous

    Gift?  That is a load of crap.

    • http://twitter.com/GRZLA Grizzly Atoms

      Talk about sugar coating.

      How is the stock price going down a gift for investors? As in investor I would be upset if the price of the company I am currently invested in was slipping.

      • Anonymous

        Even you can’t be that stupid. Its a gift cuz in two weeks the stock will be back to the 420+ range and probably 450 – 475 by christmas. Anyone buying today gets a discount. Dumbass.  true story™©®

      • scroaat

        Nobody wants to type on a touchscreen keyboard. Apple will be dead in two years. True story™©®

      • Anonymous

        Wall Street has been screwing isheep for years manipulating prices. Dumb asses like you make them laugh all the way to the banks they own 

      • http://twitter.com/Everlong44 S.C.

        Do you not know how the stock game works? The “gift” is that the only reason the numbers were low is that they didn’t release an iphone in that quarter. We know the iphone 4S is selling like hotcakes and will continue to in this quarter. So the stock going down makes for a great time to buy more of it and it will more than likely skyrocket at the end of this quarter… buy low.

      • http://twitter.com/GRZLA Grizzly Atoms

        Investor is a term that implies someone that is currently invested. Future investors are people who plan to invest. To them this would be a great time to gobble up some stock. For current investors this is just their stock losing some value. I guess I was thrown off by BGR’s wording of the whole thing.

        Delayed iPhone gets you 7% off stock.

      • Oakenfold1978

        B/C it gives you a chance to buy in at a lower price dumb dumb.

      • http://pulse.yahoo.com/_RAPC6FO223MGETLA2ZYKOU33L4 GF

        It is only good when Apple exceeds expectations. and when it misses.

      • http://twitter.com/Everlong44 S.C.

        No, your still wrong. Even if someone is an “invester” in your terms and already owns the stock. It is still the best time to by MORE of the stock. Just because you already have it doesn’t mean you don’t want more… you sir, are not very smart. Stop trying.

  • Satya Chowdary

    Does this mean apple will pay BGR less, so that they can save more money to show as profits?

    • Anonymous

      what, are you nuts?!?! BGR would do it for free!!!!!! lol

  • Anonymous

    what a scary price target they couldnt do 665 or 667 huh? 

  • Bobdonhim

    Why wasn;t BGR staff at BB DevCon like they are at all the other events?  Apple refuse to pay your travel expenses?  All negativity about RIM but any slightly negative article about Apple is quickly followed by someone trying to pump their tires.

  • Tim Hoyt

    seriously BGR?? so if your apple missing your financial benchmark is a good thing? you can just automate this process you know; ANYTHING with the word Apple in it can be auto-posted with unicorns and rainbows

    • Carmen

      Apple didn’t miss their estimates. They missed the street’s estimates. Those people are guessing just like you or I about when products are gonna come out. They thought the new iPhone would come out that quarter and it didn’t, so their numbers on iPhone sales were off and the revenue was off because of that. Apple had it’s best fiscal fourth quarter ever. I think sold more Macs than any quarter ever. Sold more iPads than any quarter ever and they missed a benchmark?

  • http://twitter.com/cordial david carter

    Yeah everyone let’s party like it’s 1999, results be damned. 

  • http://twitter.com/cordial david carter

    To anyone considering investing in Apple, don’t listen to analysts, they’re most bullish at the top (and vice versa). This might not be the top but people are sure starting to talk like it is i.e. saying bad news is great.

  • Anonymous

    Speculators are not investors. Discuss.

    • Anonymous

      Investors speculate … done

  • Anonymous

    Keep shorting it? What have you been smoking?

  • http://twitter.com/ocdtrekkie Jake Weisz

    Only Apple fanboys can say “the stocks drop? it’s a gift!”

  • Anonymous

    They should magic their earnings back up there

  • Anonymous

    A price target of 666?  maybe they should have rounded down a buck?

  • Anonymous

    Kinlde Fire will be the next excuse 

  • Anonymous

    Just rename the site Boy Analyst Report already and be done with it.

  • Justin_L

    This truly is a gift and makes it a great time to buy. It’ll jump back 10-15% during the holidays.

  • Chris Allen

    I almost thought that you were not going to be able to polished that bad Apple news but you were able to. I should never doubt your spin abilities again. ;-)  

  • antonio roman

    isn’t everybody typing on a touch screen i was thinking that all phones are touchscreen but with SIRI…you can just ask her to send a text for you…and it is a gift for investors make their money and sell high that’s the name  
    of the game…and if you think APPLE will be dead….your freaking Crazy…..stay tune….for More Exciting great news from APPLE…IPAD 3 AND MINI IPAD….GET READY…PLUS IPHONE 5 IN THE SUMMER…

    • Chris Allen

      Don’t know if troll or a person who also thought iPhone 5 was coming out in October.

  • Anonymous

    For apple, even not meeting expectations is a good thing

    • Chris Allen

      they can do no wrong apparently…

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