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Wed, Jan. 27, 5:17 AM
- Here are the most-recent price-target changes for Apple (NASDAQ:AAPL). All of them are reductions, although none of the firms changed their generally bullish ratings on the stock.
- Morgan Stanley: new PT (price target) of $135, previous $143. Rating remains Overweight/Cautious.
- JPMorgan: new PT of $141, previous $145. Rating remains Overweight.
- Baird: new PT of $130, previous $150. Rating remains Outperform.
- FBR: new PT of $130, previous $150. Rating remains Outperform.
- Cross Research: new PT of $140, previous $150. Rating remains Buy.
- Barclays: new PT of $142, previous $150. Rating remains Overweight.
- Macquarie: new PT of $117, previous $133. Rating remains Outperform.
- Stifel: new PT of $120, previous $140. Rating remains Buy.
- Piper: new PT of $172, previous $179. Rating remains Overweight.
- BMO: new PT of $130, previous $133. Rating remains Outperform.
- Street high is Drexel Hamilton at $200. Street low is ABG Sundal Collier at $65.
Tue, Jan. 26, 6:35 PM
- In its supplemental slides (.pdf), Apple (NASDAQ:AAPL) notes forex had a 600 bps impact on FQ1 revenue growth (2% vs. 8%). The effect was particularly strong in Europe (+4% vs. +18%) and Rest of Asia-Pac (excludes China/Japan, +4% vs. +19%).
- On the earnings call, Tim Cook noted Apple has seen economic turbulence in China/Hong Kong - Intel has also reported seeing Chinese macro pressures. Cook insists Apple remains bullish on China, and predicts rising 4G penetration will continue lifting iPhone sales. 50% of Chinese iPhone sales are said to be to first-time buyers. (live blogs: WSJ, Business Insider)
- Notably, when asked about virtual realty, Cook suggested he's positive on the technology. "I don’t think it’s a niche. I think it can be … it’s really cool and has some interesting applications." Apple recently hired VR expert Doug Bowman; Facebook is getting set to ship its first consumer Oculus Rift model, and Google/Alphabet has created a dedicated VR unit.
- When asked about iPhone ASP, CFO Luca Maestri suggested a favorable mix gave a lift - demand for 5.5" iPhones and higher storage tiers could be helping. Regarding forex, Maestri said Apple expects a 4% FQ2 revenue hit, and sees sales dropping 5%-10% Y/Y in constant currency (implies a 9%-14% drop in dollars). Forex had a $49 impact on FQ1 iPhone ASP ($691 vs. $740).
- Also mentioned: 1) iPhone channel inventory was at the low end of Apple's target range at the end of FQ1, and iPad channel inventory within its target range. 2) App Store revenue rose 27% Y/Y, and App Store customers 18%. 3) Apple plans to update its capital return plan next quarter, and to be active in debt markets.
- AAPL now -2.2% after hours to $97.80.
- Apple's results/guidance, FQ1 details/dividend
Tue, Jan. 26, 4:58 PM
- Helping Apple (NASDAQ:AAPL) beat FQ1 EPS estimates in spite of a revenue miss: Gross margin was 40.1%, up 20 bps Y/Y and above a 39%-40% guidance range. FQ2 GM guidance is at 39%-39.5% vs. a reported 40.8% a year earlier.
- Product line performance: iPhone revenue (68% of total revenue) +1% Y/Y to $51.6B; units up fractionally to 74.8M. iPad revenue -21% to $7.1B; units -25% to 16.1M. Mac revenue -3% to $6.7B; units -4% to 5.3M. Services (iTunes/App Store, Apple Music, Apple Pay, AppleCare) +26% to $6.1B. Other products (Apple Watch, iPod, Beats, Apple TV, peripherals) +62% to $4.4B.
- Regional performance: Americas revenue -4% Y/Y to $29.3B. Greater China +14% to $18.4B. Europe +4% to $17.9B. Japan -12% to $4.8B. Rest of Asia-Pac +4% to $5.4B.
- ASPs: iPhone ASP rose to $691 from FQ4's $670 and FQ3's $660. iPad ASP rose to $439 from FQ4's $433 and FQ3's $419. Mac ASP rose to $1,270 from FQ4's $1,205 and FQ3's $1,257.
- Financials: Repurchases of common stock totaled $6.9B. GAAP SG&A spend rose 7% Y/Y to $3.85B; R&D spend rose 27% to $2.4B. Apple ended FQ1 with nearly $216B in cash/investments (much of it offshore), and $63B in debt/commercial paper.
- Dividend: Apple has declared its regular quarterly dividend of $0.52/share (2.1% yield). The next dividend will be paid on Feb. 11 to shareholders on record as of the Feb. 8 close.
- CFO Luca Maestri: "Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment." Tim Cook tells CNBC Apple now has over 1B active devices.
- AAPL -0.3% after hours to $99.74.
- Apple's FQ1 results/FQ2 guidance, earnings release, earnings call webcast
Tue, Jan. 26, 4:33 PM
- Apple (NASDAQ:AAPL): FQ1 EPS of $3.28 beats by $0.05.
- Revenue of $75.87B (+1.7% Y/Y) misses by $720M.
- 74.8M iPhones (near expectations), 16.1M iPads (below expectations), 5.3M Macs (below expectations).
- Expects FQ2 revenue of $50B-$53B, below a $55.6B consensus and year-ago sales of $58B.
- Shares +0.8% after hours.
- Press Release
Mon, Jan. 25, 5:35 PM
Thu, Jan. 7, 4:14 PM
- Qorvo (NASDAQ:QRVO) now expects FQ3 revenue of $620M, well below prior guidance of $720M-$730M and a $723.7M consensus. The RF chipmaker blames "weaker than forecasted customer demand in the Company's Mobile Products segment."
- Revenue is expected to be flat Q/Q in FQ4. Consensus is at $641.9M. "Above-market revenue growth" is forecast for calendar 2016. FQ3 results are due on Feb. 4.
- Cirrus Logic (NASDAQ:CRUS) now expects FQ3 revenue of $347M, below prior guidance of $370M-$400M and a $386M consensus. Cirrus: "Our preliminary revenue results reflect weaker than anticipated demand for certain portable audio products. This weakness escalated over the last few weeks of December and is expected to continue to significantly impact our revenue in the March quarter."
- The audio codec developer still expects "meaningful" FY16 (ends March '16) revenue growth, and expects several new product launches to drive strong FY17 growth. FQ3 results arrive on Jan. 27.
- Both Qorvo and Cirrus are iPhone suppliers, with Cirrus getting well over half its revenue from Apple (NASDAQ:AAPL). The warnings follow multiple reports indicating Apple has cut iPhone-related orders. Cirrus has dropped to $24.52 after hours.
- Update (5:14PM ET): Qorvo is down 10.2% after resuming trading. Many other Apple suppliers are also lower.
Oct. 27, 2015, 7:11 PM
- FQ4 iPhone (NASDAQ:AAPL) sales rose 120% Y/Y in mainland China (driving 99% total Greater China revenue growth), CFO Luca Maestri mentioned on the earnings call. Meanwhile, Tim Cook insisted Chinese macro conditions remain good, and talked up the potential for middle class growth and rising 4G penetration to boost iPhone sales in China and other Asian markets. Over 50% of Chinese iPhone buyers were first-time buyers.
- Also mentioned by Cook: A strong dollar is expected to have a 700 bps impact on FQ1 revenue growth, after having an 800 bps impact in FQ4. With last year's iPhone 6 launch yielding tougher comps, FQ1 guidance implies 1%-4% Y/Y revenue growth (8%-11% exc. forex), down from FQ4's 22%. Cook expresses confidence iPhone sales will rise Y/Y, and sees smartphone upgrade programs (both Apple's and carriers') shortening upgrade cycles.
- Maestri defends the iPad (revenue -20% Y/Y in FQ4), stating sell-through was 10.3M units (above sell-in of 9.9M, but still down from year-ago sell-in of 12.3M) as channel inventories fell, and that Apple has 73% of the $200+ segment of the U.S. tablet market. Customer satisfaction is said to be at 97%.
- Also mentioned: 1) 30% of iPhone buyers upgrading an existing smartphone are believed to be former Android users. 2) The recently-launched Apple News has 40M users. 3) Apple's enterprise sales of $25B over the last 12 months (previously disclosed) reflects ~40% Y/Y growth. 4) App Store revenue rose 25% Y/Y. 5) Apple Watch shipments rose Q/Q, and are expected to rise again in FQ1. However, no specific numbers are given. 6) 15 acquisitions were made in FY15 (only some are known).
- AAPL +0.4% after hours to $115.00.
- Live blogs: WSJ, Business Insider, MarketWatch
- FQ4 results/FQ1 guidance, details
Oct. 27, 2015, 4:58 PM
- Lifting Apple's (NASDAQ:AAPL) FQ4 EPS: Gross margin was 39.9%, up 190 bps Y/Y and above guidance of 38.5%-39.5%. FQ1 GM guidance is at 39%-40%. Also giving EPS a lift: Common stock repurchases totaled $13.3B.
- Product line performance: iPhone revenue (63% of total revenue) +36% Y/Y to $32.3B; units +22% to 48M. iPad revenue -20% to $4.3B; units -20% to 9.9M. Mac revenue +4% to $6.9B; units +3% to 5.7M. Services (iTunes/App Store, AppleCare, Apple Pay, Apple Music) +10% to $5.1B. Other products (iPod, Beats, Apple Watch, peripherals) +61% to $3B.
- Regional performance: Americas revenue +10% Y/Y to $21.8B. Greater China +99% to $12.5B (iPhone 6 demand). Europe +2% to $10.6B. Japan +9% to $3.9B. Rest of Asia-Pac +27% to $2.7B. International sales were 62% of revenue.
- ASPs: iPhone ASP rose to $670 from $660 in FQ3 and $659 in FQ2 (also boosted EPS). iPad ASP rose to $433 from $419 in FQ3 and $430 in FQ2. Mac ASP was $1,205 vs. $1,257 in FQ3 and $1,231 in FQ2.
- Financials: GAAP R&D spend rose 32% Y/Y to $2.2B, and SG&A spend 17% to $3.7B. Apple ended FQ4 with nearly $206B in cash/investments (much of it offshore), and $56B in debt.
- Apple has declared its regular quarterly dividend of $0.52/share (1.8% yield). The next dividend is payable on Nov. 12 to shareholders on record as of Nov. 9.
- AAPL +1.8% after hours to $116.60. Earnings call at 5PM ET (webcast).
- FQ4 results/FQ1 guidance, PR
Oct. 27, 2015, 4:33 PM
- Apple (NASDAQ:AAPL): FQ4 EPS of $1.96 beats by $0.08.
- Revenue of $51.5B (+22.3% Y/Y) beats by $380M.
- 48M iPhones (near expectations), 9.9M iPads (slightly below expectations), 5.7M Macs (near expectations).
- Expects FQ1 revenue of $75.5B-$77.5B vs. a $77.1B consensus.
- Shares +0.7% after hours.
- Update (4:38PM ET): Apple is now up 2.3%.
- Update 2 (5:48PM ET): Apple has given back its gains: Shares are now down 0.4%.
Oct. 26, 2015, 5:35 PM
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Oct. 26, 2015, 10:28 AM
- Dialog Semiconductor (OTC:DLGNF), which supplies power management chips for the iPhone/iPad and counts Apple (NASDAQ:AAPL) as its largest customer, is down 18.4% in Frankfurt after posting Q3 results.
- Dialog's Q3 revenue rose 18% Y/Y in Q3 to $330M, after having risen 44% in Q2 thanks to strong iPhone 6-related demand. The company forecasts Q4 revenue of $430M-$460M, a range that implies Y/Y growth of -1% to +6%.
- Apple is selling off ahead of tomorrow afternoon's FQ4 report, as are various chip suppliers. The Nasdaq is down 0.2%. Shares +6% YTD and trading for 11.8x an FY16 (ends Sep. '16) EPS consensus of $9.80.
- Update: RBC's Amit Daryanani (Outperform rating, $150 target on Apple) observes Dialog's Q3 revenue missed a $354M consensus, and that its Q4 guidance is below a $475M consensus. He thinks the numbers are negative for Apple "given our discussions with [Dialog] management, which suggest ASPs are up ~4-5% (implying AAPL units being flat to down 2% in Dec-qtr)." He qualifies the remarks by noting inventory and supply chain dynamics can affect the relationship between Dialog's sales to Apple and Apple's own sales.
Jul. 22, 2015, 12:15 PM
- Cowen has downgraded Apple (NASDAQ:AAPL) to Market Perform after the company beat FQ3 estimates, offered light FQ4 guidance, and reported slightly below-consensus iPhone sales. Others on the Street are reiterating their existing ratings (largely bullish).
- Upbeat on Monday, Cowen's Tim Arcuri now thinks "evidence of a widespread demand reset from China is mounting." He cites not only FQ3 iPhone sales, but also Chinese auto sales figures and results from multiple chipmakers. In addition, Arcuri states field work suggests new iPhone builds are down relative to the past cycle for the first time. "[W]hile we are very bullish about AAPL’s ability to tap into a much broader and deeper demand opportunity for a price-reduced 6/6+ than prior 'old' models, this is a different narrative."
- UBS' Steve Milunovich (Buy): "Our call that the phone ASP would be $660 was correct but we overestimated units, especially with channel inventory declining ... Despite seasonally low iPhone units, we believe Apple is building long-term value and maintain our $150 price target. Also, it is unclear if Sep guidance includes 6s sales to China, which were delayed into October last year.”
- Canaccord's Mike Walkley (Buy): "[W]e believe the current iPhone 6 and upcoming iPhone 6s should continue to post strong sales and high-end smartphone market share gains ... with only 27% of the iPhone installed base having upgraded to the iPhone 6/6 Plus devices by [FQ3], we anticipate continued strong replacement sales through 2015."
- "As Apple has become the 'gold standard' of technology, it is held to a higher standard," argues FBR's Daniel Ives (Outperform). With Greater China revenue up 112% Y/Y in FQ3, he considers China concerns overblown, but wants to see more transparency regarding Watch sales.
- Prior Apple coverage, CC transcript
Jul. 21, 2015, 6:53 PM
- Apple Watch (NASDAQ:AAPL) accounted for well over 100% of the $952M in annual revenue growth seen by Apple's Other Products segment in FQ3, CFO Luca Maestri mentioned on the earnings call. Bloomberg observes Maestri's remarks point to 1.9M+ Watch sales, if one assumes a $499 ASP. (live blogs: WSJ, BI)
- Tim Cook stated Watch sales were higher in June than in April or May. He once more declined to provide specific Watch revenue/unit figures, while asserting Apple has chosen not to do so to keep info out of competitors' hands.
- He also once more defends the iPad (units -18% Y/Y to 10.9M), estimating Apple has 76% of the market for $200+ tablets and stating customer sell-through (11.2M) was better than sell-in thanks to a 300K-unit drop in channel inventories.
- The iPhone (units +35% to 47.5M, but below a ~49M consensus) saw channel inventories fall by 600K Q/Q, bringing them to the low end of Apple's 5-7 week target range. Greater China iPhone sales were up 87% Y/Y and Mac sales 33%. 27% of iPhone users are said to have upgraded to a 6/6+.
- Also: 1) A strong dollar had an 8% impact on revenue growth, and a $24 impact on iPhone ASP; the latter was still up $99 Y/Y, thanks in part to the 6+. 2) 89% of Apple's cash balance is offshore. 3) The retail store count is up to 456 (190 outside the U.S.). 4) 8,500 third-party Watch apps are now available.
- AAPL -6.6% AH to $122.16.
- FQ3 results/FQ4 guidance, details
Jul. 21, 2015, 4:59 PM
- Apple (NASDAQ:AAPL) had an FQ3 gross margin of 39.7%, +30 bps Y/Y and above a 38.5%-39.5% guidance range. FQ4 GM guidance is also at 38.5%-39.5%.
- Product line performance: iPhone revenue (63% of total revenue) +59% Y/Y to $31.4B; units +35%. iPad revenue -23% to $4.5B; units -18%. Mac revenue +9% to $6B; units +9%. Services (iTunes, App Store, AppleCare, Apple Pay, etc.) +12% to $5B. Other products (Apple Watch, iPod, Beats, accessories, etc.) +49% to $2.6B.
- Regional performance: Americas revenue +15% Y/Y to $20.2B. Europe +19% to $10.3B. Greater China +112% to $13.2B. Japan +9% to $2.9B. Rest of Asia-Pac +26% to $3B. International markets made up 64% of revenue vs. 69% in FQ2.
- ASPs: iPhone ASP was $660 vs. $659 in FQ2 and $687 in FQ1. iPad ASP was $415 vs. $430 in FQ2 and $419 in FQ1. Mac ASP was $1,257 vs. $1,231 in FQ2 and $1,258 in FQ1.
- Financials: GAAP SG&A spend rose 25% Y/Y to $3.56B; R&D spend rose 27% to $2.03B. $10B was spent on buybacks, up from FQ2's $7B. Apple ended FQ3 with nearly $203B in cash/investments (much of it offshore), and over $47B in debt.
- Apple has declared its regular quarterly dividend of $0.52/share. The next dividend is payable on Aug. 13 to shareholders on record as of Aug. 10.
- Shares have fallen to $121.60 in AH trading. Earnings call starts at 5PM ET (webcast).
- FQ3 results/FQ4 guidance, PR
Jul. 21, 2015, 4:33 PM
- Apple (NASDAQ:AAPL): FQ3 EPS of $1.85 beats by $0.04.
- Revenue of $49.61B (+32.5% Y/Y) beats by $300M.
- Expects FQ4 revenue of $49B-$51B, below a $51.1B consensus.
- 47.5M iPhones (slightly below expectations). 10.9M iPads (in-line), 4.8M Macs (near expectations).
- Shares -7.5% AH.
Apple Inc designs, manufactures, & markets mobile communication & media devices, personal computers, & portable digital music players, & sells a variety of related software, services, accessories, networking solutions, & third-party digital content.
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