Analysts have become increasingly bullish on Apple (AAPL) in the month leading up to the company’s second quarter earnings announcement scheduled for Tuesday, April 24, 2012. The consensus earnings per share estimate has moved up from $9.60 a share to the current expectation of earnings of $9.86 a share.
Prior Quarter Recap
Apple reported a stellar first quarter of 2012. Apple earned $13.87 per share in the reported quarter, handily beating the Zacks Consensus Estimate of $10.07. Earnings per share (EPS) soared 115.7% from the year-ago level of $6.43 and were also ahead of Apple’s conservative guidance of $9.30.
Apple’s first quarter beat was primarily driven by strong holiday season sales based on the ramp in demand for the new iPhone 4S, which was released in October 2011. Total revenue in the quarter surged 73.3% year over year to $46.33 billion and beat both the company’s forecast of $37.00 billion and the Zacks Consensus Estimate of $38.86 billion. The year-over-year upside was driven by strong growth in iPhone (up 133.0% year over year), iPad (up 99.0% year over year), and Macintosh (up 22.0% year over year) sales.
Total sales in the reported quarter surged 82.0% year over year to $28.57 billion, representing the highest sales in the company’s history. The growth was primarily driven by strong sales of the iPhone and the iPad devices.
Technical Side:Share of Apple Inc. (AAPL) is trading over $555 in middayTuesday.Next short term support area is $550 if did not hold stock could go $550 area which could be good buying opportunity or wait for 200 ema which is $460?.Apple has next resistance $600.Long term support level 200 ema.I think stock is buy under $500 any market correction.Is Apple Inc. (AAPL) should trade $700 in 2012?. This is my one of the Top Pick for 2012.
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Prior Quarter Recap
Apple reported a stellar first quarter of 2012. Apple earned $13.87 per share in the reported quarter, handily beating the Zacks Consensus Estimate of $10.07. Earnings per share (EPS) soared 115.7% from the year-ago level of $6.43 and were also ahead of Apple’s conservative guidance of $9.30.
Apple’s first quarter beat was primarily driven by strong holiday season sales based on the ramp in demand for the new iPhone 4S, which was released in October 2011. Total revenue in the quarter surged 73.3% year over year to $46.33 billion and beat both the company’s forecast of $37.00 billion and the Zacks Consensus Estimate of $38.86 billion. The year-over-year upside was driven by strong growth in iPhone (up 133.0% year over year), iPad (up 99.0% year over year), and Macintosh (up 22.0% year over year) sales.
Total sales in the reported quarter surged 82.0% year over year to $28.57 billion, representing the highest sales in the company’s history. The growth was primarily driven by strong sales of the iPhone and the iPad devices.
Current Quarter Expectations
Wall Street estimates are up 54.1% from a year ago, when Apple reported earnings of $6.40 per share.Over the past three months, the consensus estimate has increased from $7.97. For the fiscal year, analysts are projecting earnings of $44.05 per share.Revenue is expected to be $36.49 billion for the quarter, 47.9% higher than the year-earlier total of $24.67 billion. For the year, revenue is projected to roll in at $160.73 billion.
Trends to Watch For:The company has reported double-digit revenue increases for the past four quarters. Over that span, the company has averaged growth of 69.2%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 82.7% from the year earlier quarter.
The company’s profit has been growing for the past three quarters. In the most recent quarter, net income rose by more than twofold from the year-earlier period. Net income rose 53.7% in the quarter before that, and more than twofold in the third quarter of the last fiscal year. We believe that Apple will report a strong second quarter based on higher iPad and iPhone sales. However, we expect some seasonality in sales, as the first quarter benefited significantly from strong holiday season sales.
Nonetheless, we believe that Apple remains the biggest growth story in the technology sector, primarily on account of its superior product pipeline, Apps, strong iCloud revenues, loyal customer base and international expansion going forward. Despite the legal complexities and increasing competition in iPad and iPhone segments, we are optimistic about the company’s growth prospects in the long term.
The company’s profit has been growing for the past three quarters. In the most recent quarter, net income rose by more than twofold from the year-earlier period. Net income rose 53.7% in the quarter before that, and more than twofold in the third quarter of the last fiscal year. We believe that Apple will report a strong second quarter based on higher iPad and iPhone sales. However, we expect some seasonality in sales, as the first quarter benefited significantly from strong holiday season sales.
Nonetheless, we believe that Apple remains the biggest growth story in the technology sector, primarily on account of its superior product pipeline, Apps, strong iCloud revenues, loyal customer base and international expansion going forward. Despite the legal complexities and increasing competition in iPad and iPhone segments, we are optimistic about the company’s growth prospects in the long term.
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