Timeline Strategy Cons...'s  Instablog

Apple will post EPS of $1.25 or more today, beating the high range of their conservative $0.90 to $1 EPS guidance by 25%, and beating consensus $1.09 estimates by 14% or more. They will post revenues of at least $7.8 billion and continue their recent trend of booking $3 or more billion in net cash for the quarter. I have made conservative assumptions about their ability to sell some products in an economic environment such as we have had, but the biggest potential surprise may be upside EPS. Here’s how they will do this.

Apple has two important events taking place during the week of April 19^th. On Wednesday, April 22^nd, at 5pm EDT, they report fiscal Q2 earnings covering January through March 2009. The second event, with exact timing dependent upon the customer demand rate, will see the one-billionth download from the App Store, which serves iPhone and iPod Touch customers with all manner of programs for its handheld telephone and gaming devices.