21 July, 2012 by Karen Haslam
An analyst is warning that Wall Street is likely to be disappointed when Apple announced its third quarter results next Tuesday.
Morgan Stanley analyst Katy Huberty expects Apple to make $35.1 billion this quarter. When delivering his forecast for Apple’s third quarter, Apple CFO Peter Oppenheimer told analysts to expect revenue of US$34 billion and earnings per share of US$8.68 for the June quarter.
She suggests that the Street’s estimates are not reflecting the “seasonality” of products like the iPhone and Mac.
She expects that Apple will report that it sold 27 million iPhones last quarter, and 4.1 million Macs.
In Apple’s fiscal second quarter of 2012 it sold 35.1 million iPhones, 11.8 million iPads, and 3.8 million Macs.
Looking forward, the analyst expects conservative guidance for the next quarter with shipments of 26 million iPhones, 17 million iPads, 5.3 million Macs and 5.4 million iPods, reports Apple Insider.
Huberty isn’t the only analyst expecting iPhone sales to have slowed in the quarter just gone. Mizuho Securities analyst Abhey Lamba claims that Apple has “already started experiencing a slowdown due to the impending iPhone 5 launch.”
During the second quarter financial results conference call, Oppenheimer noted that Apple is expecting a sequential decline in iPhone sales, as Apple had ramped up inventory to meet pent-up demand. The lower entry price for the iPad 2 and a stronger US dollar were also factors in Apple’s forecast.
This is a good article. We need more like them. The lower the expectations the better. It's the stellar forecasts which we need to be concerned about. They raise expectations way too high.
"last quarter" katy huberty of morgan stanley estimated $34.33 billion in revenue and 9.63 eps and apple cfo peter oppenheimer had forecast $32.50 billion in revenue and 8.50 eps.
apple ended up reporting $39.19 billion in revenue and $12.30 eps. huberty underestimated revenue by nearly $5 billion and eps by nearly $3. she has consisently underestimated apple earnings 15-30% for several years now and always places in the bottom 20% of 50 analyst covering aapl on accuracy and has even placed very last on few occasions.
AEA team, why are you giving wrong dates to articles. This article is dated 18 July, means whatever information was there, has been known for a while by the market. Look it up in UK macworld. You don't have to spread misinformation.
And for every negative article, you can find a positive one:
Analyst predicts stellar iPad sales in next week's Apple earnings
iPhone, Mac sales won't be as sluggish as some think
By Gregg Keizer
July 19, 2012 03:35 PM ET
Computerworld - Apple will report a fall-off in iPhone sales next week, although not as dramatic as some believe, but the iPad will make up the difference, with units sales 72% above last year's, a financial analyst today.
Lets see the lady past history: last Q she was ranked at the 54 place out of 57 analysts accurancy EPS /REV and even worse at 55 out of 57 when it came to all AAPL numbers iPhones iPads Mac's iPod etc..
So would you buy a rec from her? Oh by the way she does have a 730$ price target
Sentiment: Strong Buy
She could hold a position on our current administration's cabinet, no one is expected to be held accountable for their past performance. After 3.5 years we are batting 0, Katy would make a great addition to the team.