Tuesday, July 24, 2012

Apple Inc.’s (NASDAQ:AAPL): Big Earnings Day For Investors & Analysts

It would be a big day for Apple Inc.’s (NASDAQ:AAPL) investors and the Wall Street as the world’s largest company with market value over $564 billion is all set to report its third quarter earnings after market-hours.

Unlike in the past two quarters, this time investors are cautious on the company’s earnings with average analysts are estimating the company to report $10.36 a share in earnings and revenue of $37.18 billion. In a year ago quarter, the company had $7.79 a share on revenue of $28.57 billion. However, whisper earnings are estimating the company to report $11.89 a share.

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Several key metrics are going to be closely watched with most significant is the company’s sales of iPhone, which drives the majority of revenues. Although, strong growth is expected, but analysts expect that Apple may miss street’s estimates considering tech lovers are postponing their buys ahead of much anticipated launch of new version of iPhone 5. Although, exact date or month is uncertain, but analysts speculate that it could be between September to October later this year.

Moreover, as we all know Apple issues conservative forecast and investors are once again closely watch for earnings guidance as several tech companies in the past week had provided captious earnings forecast.

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An analyst at Pacific Crest Securities said that “While we see the potential for modest upside to our fiscal third quarter (June) iPhone unit estimate of 25.4 million, we do not expect fiscal third quarter iPhone units to top 27 million, which we believe is the buy-side consensus estimate.”

Shares of the company had solid seen solid recovery form session’s low on Monday and ended less that $1 lower at above $600 mark. In the pre-market session, the stock is up 0.55% to $607.07. The stock has already underperformed year to date with a gain of about 49% and trading just 6% away from its all time high of $644 in early April 2012.

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