"Specifically, we are modeling $4.4 billion, 43 cents and 8.8 million iPods versus consensus of $4.6 billion and 44 cents," analyst Shaw Wu told clients in a research note issued on Tuesday. "For the June quarter, we continue to believe Apple will guide conservatively reflecting efforts to reduce inventory of PowerPC Macs and older iPod nanos."
The analyst is modeling for the June (current) quarter $4.4 billion, 44 cents and 8.5 million iPods versus the Street's consensus of $4.7 billion and 48 cents. "We believe consensus revenue estimates remain unrealistically high and believe Apple will likely make another attempt to reset expectations," Wu wrote. "Given the recent 16 percent run-up in Apple shares, we would not be surprised to see a pullback post-print."
Nevertheless, the analyst said he'd remain a buyer on weakness and believes the company is well-positioned to deliver upside with strong second half seasonality and product momentum, including new low-cost Intel portables and changes in its iPod line-up.
American Technology Research maintains a "Buy" rating on Apple shares with a price target of $101.00.