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  • Apple Fumbles in Q3 Earnings Report


    In recent weeks, MMi has consistently covered the wide range of industry analysts and Wall Street watchers who were aggressively revising their earnings estimates ahead of Apple's Q3 report today. And from the looks of it... they were all wrong.

    Really wrong.

    Aptly described immediately in the press as "a huge earnings miss," shares of AAPL plunged 5% in after-hours trading as the company revealed net income was $8.8 billion ($9.32 per share). Although that's up 21 percent from $7.3 billion ($7.79 per share) one year ago, Wall Street was looking for gains amounting to $10.37 a share. Revenue also rose 23 percent to $35 billion, but analysts were expecting to see $37.22 billion in revenue.

    “I think people were prepared for a bit of a top-line miss, but this is a bit extreme,” Alex Gauna, an analyst at JMP Securities, tells CNBC. “Obviously, gross margin wasn’t enough to save the stock in this case.”

    Apple sold 26 million iPhones in the quarter, at the low end of expectations. It sold 17 million iPads, beating forecasts. The company reported that its cash pile rose to $117 billion, an increase of $7 billion during the quarter.
    Rounding out the disappointment, Apple's fourth-quarter guidance was a letdown. It forecast $7.65 a share for earnings on revenue of $34 billion. Once again, analysts’ expectations were more optimistic - $10.22 a share earnings on revenue of $38 billion.

    Source: CNBC
    This article was originally published in forum thread: Apple Fumbles in Q3 Earnings Report started by Michael Essany View original post
    Comments 21 Comments
    1. quidam_brujah's Avatar
      quidam_brujah -
      Quote Originally Posted by ncruzpr View Post
      This is just what is wrong with the US Financial System. How can an increase in the Bottom Line be viewed as a failure? "It's a travesty because event though we made a ton of money, we wanted to make even more money."...Greedy bastards.
      I mostly blame the analysts. Motorola had the same problem for years and years: they'd beat their expectations, miss analysts expectations and their stock would go down. I knew a lot of guys that worked there and that was a common complaint.

      Grand scheme, it's related to the same problem you have with any other speculative market and why most of the financial services 'industry' (including too many banks) are big frickin casinos which are less honest than actual casinos.