Last year, actual EPS for March quarter was 12.30. Based on CFO's estimates, Analysts are projecting that Apple earnings are declining by 15.10% . You read that right. Analysts are projecting more than fifteen percent decline in earnings.
Apple CFO and team better fix these estimates. This is what is causing the selling.
Check the estimates here: http://finance.yahoo.com/q/ae?s=AAPL+Analyst+Estimates
You are acting as if this is shocking news that only you are privy to. Have you seen what they stock has done since earnings?
We will see what happens. The CFO only gave top line guidance $41 billion to $43 billion which is yoy growth ($39.2 billion same qrt last year)--but they also had pretty good gross margins last year (47.4%).
Apple earning roughly 1 billion per week---so its that bad---China sales growing at 50%, per qtr---so go figure your PE and tell me where you'll find a Milk Cow putting out this kind of milk--
Sentiment: Strong Buy
Based on the guidance from AAPL it will be around 8.23 to 9.18, a much bigger decline. Does this really matter? The real question is what is the proper multiple for the stock? GOOG trades above a PE of 20, MSFT at 15. Even if AAPL trades at 13 to 14, meaning AAPL is less profitable then GOOG and MSFT, which isn't the case, the stock should be trading in the mid to upper $500's. A lot of people lost a ton of money thinking the stock was going to skyrocket, don't be the guy who loses a ton thinking it will go to $0
Sheeple dont get that, stop bringing up facts. Think about the revenue increase for next quarter. From 11 to 12 it was 55%, and from 12 to 13 they are projecting 7%. 3rd and 4th quarter could be negative revenue growth if that trend keeps up and then EPS willl really be f'd. Sure they wont go to 0, but if the EPS drops to $30 by end of 2014 I wouldnt be surprised. Still a cash cow, but they have to spend about 3 billion a year just to stop the dilution, the dividend is pathetic compared to what other stocks are paying (although getting better every day). Absent a new product or better then expected results this could be a $300 stock in a year.
A 7% revenue increase over $50Billion is better for EPS than a 50% increase over 32 Billion. I get the concept of being forward looking but even if Apple remains flat its making 50Billion a quarter and being priced exponentially lower than say an AMZN who loses millions. Please explain that.
You have crazy math. At 8.72 and $100 that would mean that they would have have 11.4 in EPS an eighty percent decline in earnings. In the last two years they have sold 200 million phones, all of which will probably be replaced in the next two years. You were probably the same guy saying the stock could go up to $1000.
Would a CM deal increase EPS? More revenue does not translate to higher earnings. CM deal may mean Apple would sell more iPhones at a lower price too. Apple had more than $8 billion higher sales than last year in the current quarter, although earned the same amount of money. What are your thoughts?