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By Jonathan Chen

Apple (NASDAQ:AAPL) reported earnings last week that absolutely blew away consensus estimates, continuing to defy even the most optimistic on Wall Street. The Cupertino-based company reported third quarter earnings of $7.79 per share on $28.57 billion. That topped estimates from Wall Street that were looking for $5.84 per share on $24.98 billion in revenues. Revenues jumped 82% year-over-year.

"We're thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent," said Steve Jobs, Apple's CEO. "Right now, we're very focused and excited about bringing iOS 5 and iCloud to our users this fall."

"We are extremely pleased with our performance which drove quarterly cash flow from operations of $11.1 billion, an increase of 131 percent year-over-year," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the fourth fiscal quarter of 2011, we expect revenue of about $25 billion and we expect diluted earnings per share of about $5.50."

This of course is old news. Everyone knows that Apple continues to dominate like no other company in recent memory. What most people do not know is what goes into the iPad, iPhone, and Macbooks that sell so often. In the 20+ million iPhones and 9.25 million iPads are chips from companies like ARM Holdings (NASDAQ:ARMH), Broadcom (NASDAQ:BRCM), and Omnivision Technologies, Inc. (NASDAQ:OVTI). Between yesterday and today, we saw results from Broadcom and ARM Holdings that handily beat Wall Street estimates. These two names get a major boost whenever someone buys an iProduct, and many are expecting the iPhone 5, which is going to be launched in September, to be a major seller, continuing what we have seen in recent quarters.

CEVA Inc. (NASDAQ:CEVA) finds its chips being used in the iPad, and it's no surprise that the semiconductor company reported earnings this morning that handily beat estimates, sending shares up 8% as of this writing. CEVA engages in designing and licensing silicon intellectual property for the iPad and other devices. Zagg Inc (NASDAQ:ZAGG) is another name that benefits from Apple, as it sells protective coverings, audio accessories, and power solutions for consumer electronic and hand-held devices.

There are plenty of other stocks that benefit from Apple's halo, but these are some of the names which really benefit from Jobs' ability to sell ketchup popsicles to a woman in white gloves. As long as Apple keeps selling iEverything, there is plenty of growth ahead in store for these names.

Bullish: Traders who believe that Apple will continue to grow at extraordinary rates might want to consider the following trade: Go long the basket of names in this list. Use dips to take advantages and add to your positions.

Bearish: Traders who believe that Jobs can not really turn water into wine may consider an alternate position: Short these names, especially the higher growth names like CEVA and ARM Holdings, which have higher earnings multiples than the other names in the group. These two will fall harder if there is any suspicion that Apple's growth is slowing.

Source: The iPortfolio: Stocks That Live Off Apple's Glow