awcabot

Apple's Surprising Jump After Bleak Guidance

Apple actually guided $7.8B(*) and delivered $7.9B, so it beat it's own guidance.

However I would like to know why the author thinks that 15x trailing earnings is a good price, when presumably he bought it at $118 in February, when it had a considerably higher P/E. Why was the high P/E ok then but not now? Are Apple's EpS growth prospects so reduced that at P/E of 15 is high? Is the author considering GAAP or non-GAAP earnings?

I personally think that Apple at worst will deliver no low growth (10%) for the next couple of quarters, and when this economic malaise subsides, we will find Apple growing a fourth leg to it's business model, in something we can not yet imagine.

* www.apple.com/pr/libra...