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  • Apple's Success Is In The Sensational And The Subtle [View article]
    nickysg:

    I did not specify a dollar potential for the iWatch. The reference I did make was the revenue generated by the iWatch next fiscal year might rival the revenue growth delivered by the iPhone 6. However, the revenue generated by this yet-to-be-announced accessory line might also come in below that level. The point of the reference is the iPhone product line will continue as the principal revenue and net income driver for the company.

    Due in part to Apple’s already massive market cap of over $600 billion, share price appreciation expectations need to be kept in check. In my view, earnings growth is the primary driver of Apple’s share price appreciation.

    The share repurchase program will push the rate of earnings per share growth higher than the rate of growth in underlying net income. As I mentioned in the article, there are overlooked factors such as a diminishing impact of revenue deferrals on reported revenue and gross margin next fiscal year and a lower percentage of revenue to be consumed by R&D expenses next fiscal year even if R&D expenses continue to rise.
    Aug 31, 2014. 11:10 PM | 3 Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    Camden:

    The disclosure is on the source article. Apparently it wasn't picked-up by SA this time around. I have not changed my position on the company.
    Aug 31, 2014. 10:43 PM | 3 Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    jsmunroe59:

    I expect China Mobile to participate earlier than last year in the launch of new flagship iPhone handsets and the carrier is adding more 4G/LTE infrastructure by the day.
    Aug 31, 2014. 10:27 PM | 1 Like Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    fitness14:

    Apple is attractive as an ongoing growth story with a dividend component and a massive share repurchase program underway. Through the end of the $90 billion share repurchase program, earnings per share will rise at a faster rate than the underlying rate of growth in net income growth.

    As I mentioned in the article, Apple may set a new net income record in FY2015, surpassing the $41.733 billion in net income achieved in FY2012.
    Aug 31, 2014. 10:20 PM | 4 Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    ultraz2:

    $250 dollars per share would value Apple at over $1.3 trillion dollars versus a market cap in the vicinity of $615 billion today. What do you expect in revenue and net income growth in just over a year to support a rise in the market cap of over $750 billion?
    Aug 31, 2014. 06:31 PM | 4 Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    cem11:

    Thank you for your comment. This is the first time I’ve placed eight different graphs in one article, but I believe all of the illustrations are necessary to highlight the factors currently in play that may boost Apple’s financial performance.
    Aug 31, 2014. 06:12 PM | 2 Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    Camden:

    As I stated in the article:

    "No matter the dramatic rise in the share price over the past four months, opportunities remain for long-term shareholders to be richly rewarded over the next several quarters."

    I haven't changed my position one iota. As I believe you know, I am a long-term investor and I see real share price appreciation potential for Apple moving forward.
    Aug 31, 2014. 06:02 PM | 2 Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    aardvark3:

    I expect strong growth for Apple through the introduction of new products and services and a strengthening of the underlying fundamentals due to the factors outlined in the article.
    Aug 31, 2014. 05:58 PM | 4 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    BBwetrust:

    Apple has over 800 million content customers around the world and is investing billions of dollars in content delivery infrastructure.

    Content sells devices. As you know, Apple defers revenue on each Mac and iOS device sold for the value of the services and operating systems Apple distributes for free. The value of the content and services can be seen not only in the iTunes revenue the company reports, but also in the total for iTunes billings which includes the revenue pass through to developers and content providers that Apple doesn’t recognize as its own revenue.
    Jul 30, 2014. 01:22 AM | 2 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Arnie:

    Apple does have the financial firepower to acquire desired technologies as well as revenue generating device lines and services. After a $90 billion share repurchase program, there will be other ways to increase shareholder value and certainly large acquisitions are a means to immediately boost revenue and earnings potential for the owners of the company.
    Jul 29, 2014. 09:56 AM | Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Peter:

    That’s a good question. While there would most likely be an immediate boost to volume on the day Apple joined the DJIA, the bigger issue is the comparatively low percentage of shares of Apple currently owned by institutions.
    Jul 29, 2014. 09:46 AM | Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    viking vancouver:

    Thank you for your comment. The additional shipping week in FQ1 2012 did add to the quarter’s extraordinarily high revenue and eps growth rates. Also, the addition of Verizon as an authorized carrier and the participation of Verizon customers in an initial handset roll out also boosted the quarter’s performance.

    Moving forward, the share repurchases will amplify the impact of profit growth on earnings per share through the completion of the program next calendar year. I expect stable gross margin, moderate rates of revenue growth from Apple’s three primary device lines and revenue sourced from the Beats acquisition and any new accessories lines and new services segments to be wholly accretive to FY2015 revenue.
    Jul 29, 2014. 02:25 AM | Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Zipper0:

    I agree larger-screen iPhone handsets will boost the line’s unit sales in FY2015. On a long-term basis, I see much in Apple’s new technologies and continuing platform development to deliver consistent growth. I don’t consider any one particular handset maker to be an obstacle to growth or a challenge in acquiring high-end smartphone market share this fall.
    Jul 29, 2014. 01:53 AM | 1 Like Like |Link to Comment
  • Apple's Game Of Inches [View article]
    richbar:

    Thank you for your comment. I appreciate your critical commentary and respect your point of view. Apple’s net income rose by 5.14% in the first nine months of the current fiscal year while deferred revenue with no associated cost of sales attached rose $1.394 billion to $11.454 billion.

    Absent profit growth the share repurchase program has diminished value. The four-quarter drop in profitability that commenced in the March quarter of FY2013 (preceded by marginal net income growth of $14 million in FQ1 2013) was due in part to unsustainable gross margin realized in the prior fiscal year and what appears to have been a cost-challenged original iPhone 5 which prompted extraordinary warranty cost set-asides.

    Impacting Apple’s aggregate revenue growth rate of 5.42% in the first nine months of the current fiscal year has been the nearly $2 billion drop in iPod revenue in the same nine-month period. By FQ1 2015, iPod line revenue decline will be essentially immaterial to results.

    Absent the delivery of new accessory lines such as the much-anticipated iWatch line or the introduction of new services revenue segments, I’d expect revenue growth next fiscal year in the mid-to-high single digits on stable year-over-year gross margin.

    As of June 28th, there’s about $39.9 billion in share repurchase authorization to be exhausted. However, I consider share repurchases without the prospect of profit growth to be a compromised approach to increasing shareholder value. While share repurchases will amplify the impact of profit growth on eps, I consider profit (net income) growth to be the primary driver of share price appreciation.
    Jul 29, 2014. 01:39 AM | 1 Like Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Buyandhold:

    if you adjust the trailing 12-month eps for June quarter results, the multiple falls to about 15.78.

    Do you believe there’s more upside to Apple over the next six months or downside for Apple over the next six months?

    If there’s more upside than downside in your view, why would try and time the stock as a buy and hold investor?
    Jul 27, 2014. 11:55 PM | 2 Likes Like |Link to Comment
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