Shares of Apple Inc.(NASDAQ:AAPL) have been doing fine
before its third quarter earnings to be announced on July 24, 2012. The stock
has traded in a narrow range ever since it reported its second quarter earnings
on April 24. The company had reported well above analysts’ estimates and the
stock gained over 9% following earnings to $610.
The stock then fell to $530m, but quickly rebounded to $580
in few weeks and went into consolidation phase. Early July, the stock gained
momentum and comfortably broke above $600 mark. The stock is now trading lower
by 0.12% to $606.19.
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Average analysts are estimating the company to report $10.38
a share, compared to a year ago profit of $7.79 a share. Revenue is estimated
to grow by 30.70% year over year to $37.33.
Although investors are quite optimistic on the company’s
earnings as it has done historically, this morning analyst at Pacific Crest
issued a cautious notes on upcoming earnings and warned that the company may
failed to meet analysts’ estimates. Moreover, the firm also said that
fourth-quarter estimates "appear too high."
Despite the warning, the firm expects "extremely strong
expectations" for the upcoming iPhone 5 will likely blow away any
concerns.
If that’s not enough, on Tuesday, analyst at Gabelli trimmed
its shipments for Apple devices across the board, citing worse-than-expected
macro weakness. Additionally, last week, analyst at Citi removed the stock from
their”Champions" list.
Well that wasn't very helpful, was it.
ReplyDeleteActually, there is a lot of pessimism on AAPL, which in the past has proved to be a valuable contrary indicator.
I am long and staying the course.