Too cold? Too hot? Too much rain? Too much snow? Couldn't find the port? The dog ate 27 tons of copper? They ran the belt in reverse by accident for half the quarter putting Copper back into the ground? (hmmm, they did pre announce a 35% increase in copper so that one is probably out). Their hedge backfired?
I guess they don't really need an excuse. They can just come in with the estimated three cents a share and suck naturally.
Do the improvements they made ever actually impact the bottom line?
I'm with you. If the future is so bright what does he care about a short term drop? And why not buy back last year when it was under $400? I think someone is trying to meet a performance goal to trigger a bigger bonus.
I have a hard time seeing EPS drop to $36 during a massive buyback, but could easily see it happening once the buyback is over. I mean last quarter is now around $15 when you consider the additional shares out of circulation. They should be able to squeeze 9-10 for the next 3 quarters considering they've gone from 940 million shares to about 865 and should get down to 830 with just the remaining money left. Considering they will increase the buyback to at least 100 billion in March/April, that number drops further to around 755…
Who knows? Maybe they do have great things coming and people will wonder why they ignored Cook…but I doubt it.
One thing with TGB there is always an excuse for underperforming. It's a lower grade copper this quarter? That's a new one. Usually it's the dog ate my copper, or we couldn't get to the dock or the copper went bad, or our hedge backfired, or the conveyor belt ran backward putting the copper back into the ground, or it was too cold (or too hot), or to rainy (or too dry).
Honestly if they say it's a lower grade of copper if I were covering the call I would have to ask why that's never been an issue before?
Cook has been implying this for 18 months…and nothing earth shattering so far. You could make the counter argument that buying that much back in such a short time was a desperate attempt to support the stock price and inflate EPS when there is no net revenue growth. If $500 was such a great price why not $380 like it was a year ago or in the low to mid 400s like it was for most of last year?
Cook is now the CEO that cried wolf. He calls everything great and exciting so it's hard to take anything he says seriously. Plus some guys probably need the share price higher so they can sell all their shares when they vest.
Sure they bumped up the number by buying back shares, but net revenue is flat. Flat revenue precedes declining revenue, but should be a decent value stock for years just don't expect much growth ever again.
Apple tanked because net revenue showed ZERO improvement and guidance for next quarter is for a revenue decrease year over year. Not meeting analyst's targets had virtually nothing to do with it.
Not trying to be mean, but try not to be so stupid and actually do some research.
Cook's a moron, but nothing he says or does anymore will positively impact the stock. You can hear it in the tone of the questions from analysts on the conference calls. No one believes there are new products coming. No one cares how great he thinks current products are. And most importantly they hold him in contempt.
The reality is there are 7.2 billion people on the planet and most of the ones that can afford a smartphone already have one. Apple is now a one trick pony and that trick is about played out. Unless they come out with another product the stock has no where to go but down. Might take a while because of the buybacks and dividend, but eventually another company will come out with a better product at a cheaper price and that will be that.
Agreed, first thing I thought of was where would the price have dropped without the buyback.
Also true. "Only" 20 billion in domestic cash left after the 14 billion in buybacks they just disclosed. They still have 33 billion left to raise on the plan from last year so I imagine there will be more debt taken on in March/April, but they "only" have 18 billion of the 60 billion allocated just last year left to spend so either they need to increase the buybacks or their attempts to support the stock price with buybacks will be coming to a close.
Seems desperate to me to unload that much cash that fast. If $500 was such a good price why didn't they buy even more last year when it was sub-400? Someone has a bonus they need to hit.
Saying "barely" made 40B last year is pretty stupid. Poor way to end your point.
He's been CEO for 27 months, no new products, no new products in sight, and same old sorry double speak during earnings reports. Does anyone think anything new is coming in 2014? I'm not talking about a different screen or a one ounce lighter phone, I mean a product people will want to buy despite owning a phone and tablet.
Even with softball stuff he obviously missed the boat on offering a larger screen size, and even offering multiple colors seemed like it took Hurculean effort despite the fact any third grader could tell you different options are good. He managed to start a buyback and initiate a dividend. Yawn.
He's made his hundreds of millions. It's long past time he stepped aside and let someone with vision take over before it is too late and Apple becomes Blackberry.
Lol, that was pretty funny. Truth is analysts don't care what he says anymore and won't until he finally announces a new product line.
Executives have targets to meet for bonuses. I believe Cook has some options maturing in March that he will want to sell and probably needs the price higher.
Earning next quarter will decline year over year, a 10-15% dividend increase won't do anything, they already blew through 40 billion in buybacks and no one believes anything Cook says. It's simply amazing a company as big as Apple can't work on two different things at the same time.
I see the idiots are on parade today.
1. Zero net revenue growth year over year.
2. Guiding for flat or decreased revenue next quarter
3. Guidance and performance have been pretty close for the last year
The dividend will get raised in March/April. Even a dimwit should realize that.
Missing actual number of phones sold had very little to do with the decline, but it's something for people who aren't very bright to focus on when the reality is revenue growth is down to single digits and actual net revenues have been flat or declining year over year for the last five quarters.
Well, they've got most of the world fooled. And lets not forget it took Apple how long to admit the 3.5 inch screen wasn't "perfect." Cook has already admitted growth in N America is over.
I hear you in theory, but the reality is if there aren't new products coming they should have saved the money to buyback the shares at $400…or lower. This will support the share price for a while, but they really need new products to get growth back on track or buying back at these prices will turn out to be a waste of money.
So buy it and stop crying about the stock price. What growth? Net revenue isn't, gross revenue was barely growing and projects to be flat next quarter. That's growth to you?
And six years is way too short a time frame, but think what you want.