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Apple (AAPL +0.6%) ticks above $400 ahead of FQ2 results and FQ3 guidance few expect to be...

Apple (AAPL +0.6%) ticks above $400 ahead of FQ2 results and FQ3 guidance few expect to be glowing, particularly in light of supplier numbers (I, II). Shares are down 22% since the company posted a disappointing FQ1 report; the FQ2 EPS consensus has fallen by $1.60 over the last 90 days to $10.07, and the FY13 consensus by $4.31 to $43.66. FBR's Scott Thompson (Outperform) has cut his PT by $100 to $525 today. Thompson likes Apple's valuation, but adds "management has been surprisingly quiet about how Apple may deploy its $130B." He also asserts execution "has been plagued by operational missteps and a steady stream of reported production cuts."
Comments (9)
  • rocback
    , contributor
    Comments (974) | Send Message
     
    Everyone is expecting terrible numbers. I like how this is setting up.
    23 Apr 2013, 11:16 AM Reply Like
  • klgmdc
    , contributor
    Comments (201) | Send Message
     
    The FQ1 report was sooooooo disappointing. Another record profit and wheeee, down we go. Did we overshoot just a little bit on the downslope? I sure hope so. Are the hedge funds satisfied yet with a PE of 9? Or will the company be officially declared dead today.
    23 Apr 2013, 11:26 AM Reply Like
  • Mohamed Abdirahman
    , contributor
    Comments (106) | Send Message
     
    Hedge Fund, Hedge Fund, Hedge Fund. Why are Apple bulls so obsessed with Hedge Funds??? You know, a hedge fund can also make money when the stock rises? So why would they trouble themselves shorting a stock which (according to perma-bulls) was on a never ending parabolic uptrend? Besides some of the largest Hedge Funds had/have large LONG positions in APPL.

     

    Apple bulls need to stop blaming hedge funds and analysts and face the reality of the market! Apple peaked last September and will trade in the $300-$400 range for the foreseeable future. Unless of course the whole market tanks in which case the $200 range becomes a possibility.
    23 Apr 2013, 12:16 PM Reply Like
  • madbcolumbus
    , contributor
    Comments (117) | Send Message
     
    really AAPL to $200 per share if market crashes? you must be joking right?
    23 Apr 2013, 01:59 PM Reply Like
  • Mohamed Abdirahman
    , contributor
    Comments (106) | Send Message
     
    Not really. If the markets tank why do you think Apple make an exception to the trend? They did not counter the trend back in 2008, next crash will not be different.
    23 Apr 2013, 04:25 PM Reply Like
  • slaughterer
    , contributor
    Comments (40) | Send Message
     
    AAPL: $300 before $500. MSFT 1999-2002 retrace in action. Maybe AAPL hit their own guidance for this quarter, but their guidance for next quarter is going to hurt the bull thesis.
    23 Apr 2013, 11:52 AM Reply Like
  • rocback
    , contributor
    Comments (974) | Send Message
     
    MSFT was at over 50 times earnings when it peaked. Apple was at 15 time earnings at its peak. No bubble there. Move along.
    23 Apr 2013, 12:31 PM Reply Like
  • slaughterer
    , contributor
    Comments (40) | Send Message
     
    The problem is however: AAPL earnings are declining.
    23 Apr 2013, 12:44 PM Reply Like
  • XRTrader
    , contributor
    Comments (609) | Send Message
     
    We've definitely repriced appropriately - and overshot to downside on AAPL. The question is have we overshot enough? And, i think we are there or very close.

     

    At $400 price, with $100 in cash, even at $30 EPS AAPL trades for a decent multiple. Since AAPL will easily do $40 EPS this year, and sports a nice divy should be in good shape here.

     

    I also like how negative everyone is about the report - which I think will be average but not terrible. Stock price will move based on forward projections or AAPL cash deployment.

     

    I think investors honestly want management to be more transparent on their plan for products (iPhone mini, etc), timeline for products (at least give us launch dates for new iPads, discuss rumors about Watch/TV), and cash deployment plan.
    23 Apr 2013, 01:39 PM Reply Like
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