Apple 'not too big to blow it out' in upcoming quarterly results
Yair Reiner with Oppenheimer said in a note to investors on Friday that although AAPL stock is up 37 percent in 2010, it has still lagged behind the company's fundamentals, in which consensus earnings per share estimates are up 75 percent since January.
"The prime factor behind the underperformance of the stock relative to the fundamentals seem to be investor concern about Apple's size," he wrote. But a blowout September quarter would spur an "overdue" catch-up with investors, he said.
As such, Oppenheimer has raised its 12-to-18-month price target for AAPL stock to $345. Reiner said he expects Apple to report $19.9 billion in revenue and $4.41 earnings per share, increases from his previous predictions of $18.5 billion in revenue and $4.01 earnings per share.
Reiner also increased estimates for iPhone sales to 12 million in the quarter, up from the previous projection of 10.5 million. He also sees Apple selling 4.5 million iPads, an increase from his earlier forecast of 3.9 million. He also said his estimates could still prove to be slightly conservative.
"Bottom line, as big as Apple is today, it seems destined to get much bigger," Reiner wrote. "We're still taking our first baby steps into an iOS world in which seamless connectivity to cloud services through purpose-built apps lays waste to conventional modes of broadcasting, marketing, distributing, and consuming every manner of video, audio and printed material."
The analyst said his one concern with Apple is expectations of a Verizon iPhone in early 2011. Reiner said he doesn't see the motivation for either Verizon or Apple to make a deal so soon.
Reiner previously expressed concern that the iPhone 4 "antennagate" controversy could negatively affect Apple's handset sales. But as the controversy has faded away, it's no longer considered a factor.
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With Apple's Oct. 18 quarterly earnings report approaching, one Wall Street analyst expects the iPhone maker to issue a "blowout" report, noting the company is "not too big" to surprise investors with sales of 12 million or more iPhones.......
"Bottom line, as big as Apple is today, it seems destined to get much bigger," Reiner wrote. .....
The analyst said his one concern with Apple is expectations of a Verizon iPhone in early 2011. Reiner said he doesn't see the motivation for either Verizon or Apple to make a deal so soon.
Reiner previously expressed concern that the iPhone 4 "antennagate" controversy could negatively affect Apple's handset sales. .....]
Gee, its like the guy reads the paper and agrees with every article he reads.... So what is there to analyse.???????
Someone said antennagate would be big..... he agreed. Steve shows antennagate is no big deal.... he agrees.
Sorry, little data here, I think.
Just a thought,
en
The 'too big to grow much more' concept is really not well thought out. As anti-apple types have loved to point out for years, Apple only has a small penetration into most markets outside of iPods/ music. The fact they are far more profitable in those other sectors than those with the lions share is only more reason to see very healthy growth potential in those very areas. AAPL is ridiculously under valued.
I appreciate this always brings cries of derision from the math geniuses pointing out there is no numerical gain, but I'd like to see a stock split because it encourages more people to buy as they 'seem' as more affordable.
I'm sure Apple will do very well. They seem like a fine company.
I am expecting a blowout, but while the law of large numbers doesn't prevent a surprise, I am kind of wondering what will drive the next 100% growth in earnings... and if the share price will keep pace.
I'm also starting to wonder if they will split the stock one of these days. The high price puts me in to options... but some day I expect them to pay a dividend.
I am expecting a blowout, but while the law of large numbers doesn't prevent a surprise, I am kind of wondering what will drive the next 100% growth in earnings... and if the share price will keep pace.
I'm also starting to wonder if they will split the stock one of these days. The high price puts me in to options... but some day I expect them to pay a dividend.
Agreed on the law of large numbers, but the smart-phone segment of the entire market is increasing. In 5 years everything will be smart, or feature ( from < 10% now?). Theres the growth - although Apple should aim to garner more market share than they have now.