Wednesday, July 25, 2012

Apple Misses Earnings...Now What?

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  Apple missed Q3 2012 earnings coming in at $9.32 versus estimates of $10.23. While it exceeded its own conservative guidance, it failed to meet analyst expectations. Apple generated revenue of $35.0 billion and reached a quarterly net profit of $8.8 billion, or $9.32 per share. Margins were strong at 42.8%. All of these numbers are up compared to the year-ago period. Apple's Q3 Earnings Report

During its third quarter, Apple sold 17 million iPads. That represents a massive 84% increase compared to the year-ago period and sets a new quarterly record for Apple's tablet. It also sold 26 million iPhones, 4 million Mac computers, 6.8 million iPods, and 1.3 million Apple TVs.

Prior to 4S release 10/18/11 Q4 '11 earnings missed as well. $7.05 versus est of $7.38. The stock declined 14.4%. But the following quarter they blew away earnings $13.87 versus estimates of $10.20 and the stock rallied 45% in coming weeks.

Thus far for '12 Apple has earned $35.49, ITZ has a $50 full year target. Meaning it needs to come in with a $14.51 number in 3 months. Well Q1 2011 was $13.87 , thus ITZ believes it can beat it for Q4 '12.

ITZ maintains it's $750 price target as noted in a March blog post READ

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