Seeking Alpha

Michael Michaud's  Instablog

Michael Michaud
Send Message
Michael Michaud is the founder of Invest2Success.com (http://www.invest2success.com/) and the Invest2Success Blog (http://invest2success.blogspot.com/). He has been investing and trading in the financial markets since 1989. He founded Invest2Success.com to empower individual institutional... More
My company:
Invest2Success
My blog:
Invest2Success Blog
  • Apple Misses Key Estimates Beats Earnings 0 comments
    Jan 27, 2014 6:46 PM | about stocks: AAPL, GOOG, BBRY, HPQ

    Apple Misses Key Estimates Beats Earnings By Zacks Investment Research

    Upon Apple, Inc.'s (AAPL - Trend Report) after-market earnings report Monday on the comapny's fiscal 1st quarter of 2014, many numbers came up short of estimates. However, the world's largest tech company reported diluted earnings per share (NYSEARCA:EPS) before non-recurring items of $14.50, which was a significant beat of Zacks Consensus Estimate expectations of $14.04 per share.

    But revenues missed the Zacks Consensus of $57,735 million for the December quarter -- including the all-important holiday season -- when it reported $57.6 billion in quarterly sales. iPhones in particular sold 5 million or so units fewer than expected. Macs and iPads did slightly better than expected, but iPhones make up over half of Apple's sales. Guidance was also below expectations -- $42-44 billion for the company's Q2 March quarter.

    That said, Apple continues to set new records with its sales numbers, including new highs in iPhone and iPad revenues. Year over year, earnings are up 5%. A new $3.05 cash dividend has been declared for investors holding Apple stock as of February 10, 2014, and the company's net profit for the quarter was $13.1 billion.

    CEO Tim Cook promises to "invest heavily in our future" -- likely meaning new products at some point this year and/or next (and honestly, it does make sense that new innovations should be forthcoming... doesn't it? I mean, this is Apple). The conference call will commence shortly, and perhaps many questions investors still have about Apple will be satisfied by the end of it.

    For instance, what of the fate of the cheaper 5c iPhone? Will it go away in the U.S. market, as some have predicted? Will we get some details about Apple's partnership with China Mobile (CHL - Trend Report)? It's clear Carl Icahn's getting his way at least a little bit with a new dividend issuance, but can we expect a guy like that to remain in silent reverence of Cook's decisions going forward?

    In other words, there are roughly about as many questions as you can shake 51 million iPhones at.

    On the bottom line, Apple produced a 3.3% positive surprise for its holiday quarter. This is generally in line with what we've seen from Apple in recent quarters, but investors have yet to be impressed of late. It's the main reason AAPL shares have fallen 6% in the after market Monday, after trading down slightly year to date.

    Van Tharp Institute
    Van Tharp Institute

    Van Tharp Institute
    Investing Trading Home Study Programs & Live Seminars Workshops

    Dedicated to cutting edge, high quality professional educational investing trading programs for traders and investors providing a road map for financial freedom. The finest investing trading education in the financial universe. Dr Van Tharp is one of the orginal Market Wizards, and referred to as the Traders Coach.

    Live Trading Seminars

    Stock Option Forex Futures Trading Seminars Webinars Workshops Events
    Click Here For The Complete 2014 Schedule

Back To Michael Michaud's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.