With Steve Jobs’ medical leave from Apple, many expected the company’s stock to get hit quite a bit — and they’d be right as shares of AAPL are down around 5% as the market opens this morning. Don’t forget that Apple is reporting its Holiday quarter earnings later today, however, and the consensus is that Apple will have the biggest and most profitable quarter ever. Apple’s earnings can and most likely will help the stock overcome the impact of Jobs’ leave from Apple, at least temporarily — as was clearly Apple’s intention with the timing of yesterday’s announcement. With Apple’s extremely solid product lineup for 2011 (as it has been rumored), we’ll have to see how the stock fares long term.
Apple’s stock is up around 7 points at the time this post was published, and you know what that means… the company’s market cap is now above $300 billion. The actual number is more like $302 billion, but who’s counting a measly two billion at this point, right? Shares of Apple are trading at around $330 which is a new record high for the company. Analyst expectations are that Apple has set new sales records for the holiday quarter, and that’s most definitely baked into the stock price. Apple will report their fiscal first quarter results on January 18th. More →
Today’s earnings call with Apple has blown the minds of analysts as the Cupertino based company showed another strong quarter. Predictions for revenue was around $9.4 billion, but Apple topped it with $9.87 billion in revenue and a quarterly profit of $1.67 billion. Earnings per share is $1.82 where the consensus was at about $1.42 and whispers of $1.65. Strong sales pushed these substantial increases in profit: 3.05 million Macs (17% increase from last year), 10.2 million iPods (eight percent decrease) and 7.4 million iPhones (seven percent increase). Elated by the September quarter results, Apple CFO Peter Oppenheimer says, “For the full year, we grew revenue by 12 percent and net income by 18 percent in extraordinarily challenging times. Looking ahead to the first fiscal quarter of 2010, we expect revenue in the range of about $11.3 billion to $11.6 billion and we expect diluted earnings per share in the range of about $1.70 to $1.78.”
Is anyone really surprised? Amidst a recovering economy, Apple has been pulling impressive numbers and showing some solid growth.
Much has been gathered about Apple’s standings in the market after the impressive show it put on yesterday evening. Now, hot on the heels of the Apple’s earnings is a nice little rumor to further fuel the fire: Apple is allegedly going to team up with Verizon to release an Internet tablet that will be subsidized by the carrier. Think of it as a giant iPod touch, potentially including an actual physical keyboard. Having a tablet could be a double-edged sword as well if Apple also decides to compete with the Kindle and Barnes & Noble’s newly announced reader. So what do you guys think — would a device like this be a huge hit for Apple, or a gigantic Newton-style flop? As a side note, let’s not forget that the source of this rumor is The Street, Jim Cramer’s cohorts. You know, Jim Cramer, the guy who at one time encouraged hedge funds to spread blatantly false rumors about Apple in an effort to manipulate its stock (video, 7:58). We’re not saying an Apple/VZW tablet definitely isn’t going to happen… We’re just saying.