Apple Expected To Beat Q3 Estimates

Apple Inc. (AAPL) shares have risen more than 60% this year and are only cents away from their 52-week high of US$137.85, but that is no reason to think the run is over.

That is the view of Goldman Sachs analysts, who think the iPhone and Mac should perform well in the next two quarters, which could propel Apple shares even higher. They expect Apple will easily beat its US$5.1-billion revenue target for the June quarter and even beat the Street’s US$5.3-billion estimate. Earnings per share are also expected to come in higher than the Street at US72¢ and Apple at US66¢.

As for the much talked about iPhone, Goldman estimates that close to 550,000 units were shipped in the first day and a half of sales before the June [third] quarter closed. The firm expects iPod shipment growth will slow to around 20% on an annual basis in the fourth quarter, ahead of new iPods expected to be launched in the fall and cannibalization from the iPhone.

However, Mac sales continue to be the primary driver of revenue growth for Apple, particularly in the September quarter where school-related sales are expected to bring in revenues US$5.7-billion, Goldman forecasts.

AAPL 1-yr chart

Disclosure: None.