RBC sees Apple announcing 13.5 million iPhone "blowout" quarter
Financial experts at the Royal Bank of Canada are out with a bullish report on Apple friday, saying they expect the company to report next week a blowout quarter in which sales exceeded $20 billion and include the sale of a record 13.5 million iPhones.
The report arrives in stark contrast to expectations also published Friday by rival investment research firm Piper Jaffray, which attempted to dial back expectations that Apple could blow past its own guidance and that of Wall Street given perceptions that the company couldn't manufacture enough of its most popular products to drive significant revenue upside.
"Big Q4 beat expected as Apple surpasses $300/share...with innovation, future opportunities as strong as ever," RBC Capital Markets analyst Mike Abramsky wrote in a note to clients. Specifically, the analyst is forecasting the company to report earnings of $4.48 per share on sales of $20.3 billion.
Specifically, Abramsky said he expects those earnings to be driven by shipments of 5 million iPads, 3.7 million Macs, 9.4 million iPods, and a record-shattering 13.5 million iPhones.
As such, the analyst raised his fiscal year 2010 estimates on the electronics maker to $15 in per-share earnings on sales of 65.2 billion, as well as his fiscal year 2011 estimates to $19.27 per share in earnings on sales of a whopping $86.2 billion.
"Valuation remains compelling at 14x FTM P/E cash-adj," Abramsky wrote. "$280B market cap notwithstanding, we foresee further upside for the shares, as Apple remains well positioned against three large, growing, under-penetrated market opportunities (iPhone, iPad and Mac) and has "Cascades of Cool", i.e., subsequent product generations and accessory cycles."
The analyst reiterated his Outperform rating and $350 price target on shares of Apple.
The report arrives in stark contrast to expectations also published Friday by rival investment research firm Piper Jaffray, which attempted to dial back expectations that Apple could blow past its own guidance and that of Wall Street given perceptions that the company couldn't manufacture enough of its most popular products to drive significant revenue upside.
"Big Q4 beat expected as Apple surpasses $300/share...with innovation, future opportunities as strong as ever," RBC Capital Markets analyst Mike Abramsky wrote in a note to clients. Specifically, the analyst is forecasting the company to report earnings of $4.48 per share on sales of $20.3 billion.
Specifically, Abramsky said he expects those earnings to be driven by shipments of 5 million iPads, 3.7 million Macs, 9.4 million iPods, and a record-shattering 13.5 million iPhones.
As such, the analyst raised his fiscal year 2010 estimates on the electronics maker to $15 in per-share earnings on sales of 65.2 billion, as well as his fiscal year 2011 estimates to $19.27 per share in earnings on sales of a whopping $86.2 billion.
"Valuation remains compelling at 14x FTM P/E cash-adj," Abramsky wrote. "$280B market cap notwithstanding, we foresee further upside for the shares, as Apple remains well positioned against three large, growing, under-penetrated market opportunities (iPhone, iPad and Mac) and has "Cascades of Cool", i.e., subsequent product generations and accessory cycles."
The analyst reiterated his Outperform rating and $350 price target on shares of Apple.
Comments
Apple has room to quadruple it's market cap I believe.
"The RBC analyst maintained his Underperform rating and bleak $70 price target on shares of Apple."
http://www.appleinsider.com/articles..._momentum.html
I'm Sorry Mike Abramsky, I can't hear you. You seem to be choking on your pride.
"The RBC analyst maintained his Underperform rating and bleak $70 price target on shares of Apple."
http://www.appleinsider.com/articles..._momentum.html
Gene Munster must be getting the brown envelopes now.
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Those numbers are way above average, I dont think they will come true. If they do, AAPL may survive the earnings without plunging right after like they usually do
That's not usual at all. Apple has to beat the street by a significant margin to see an immediate upswing in share prices, but lately they've been doing just that.
This is the bank behind RIM if I am not mistaken isn't it? Good of them to be unbiased in their reporting. This is nicely said: "Apple remains well positioned against three large, growing, under-penetrated market opportunities (iPhone, iPad and Mac) and has "Cascades of Cool", i.e., subsequent product generations and accessory cycles."
Apple has room to quadruple it's market cap I believe.
Right now AAPL market cap is within $48 Billion of XOM.
I would like to see Apple do a 4:1 split to make the stock more affordable to the small investor.
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Those numbers are way above average, I dont think they will come true. If they do, AAPL may survive the earnings without plunging right after like they usually do
Actually, he is lower than some have estimated for Macs and iPads.
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Right now AAPL market cap is within $48 Billion of XOM.
I would like to see Apple do a 4:1 split to make the stock more affordable to the small investor.
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Me too for sure but you know we will get shouted down and told that "It makes noooo difference".
Also noticed something interesting the other day on the Apple store: ship times for a 3GS were a week, but a 4 was 3-5 days.
Time to pop the cork on some champaign after today's run! (Not withstanding the run up of the past two weeks!!)
Did we get any real hints last quarter on the actual margin on iPads? I keep worrying that the iPad revenue will offset some of the overly optimistic iPhone sales numbers, but will fail on margin.
Also noticed something interesting the other day on the Apple store: ship times for a 3GS were a week, but a 4 was 3-5 days.
Time to pop the cork on some champaign after today's run! (Not withstanding the run up of the past two weeks!!)
I've read Apple make as much as 50% margin on iPad but that could be overly optimistic.
http://www.computerworld.com/s/artic..._each_499_iPad
http://www.tuaw.com/2010/02/03/that-...nalyst-is-ela/
Did we get any real hints last quarter on the actual margin on iPads? I keep worrying that the iPad revenue will offset some of the overly optimistic iPhone sales numbers, but will fail on margin.
That is exactly what I was thinking. I imagine that the iPad will be a bonanza, but they did price it much lower than anyone was expecting and there hasn't been much time for economies of scale to kick in. They may have made a choice to sacrifice margins at the outset to kickstart the whole tablet thing (which clearly they did!).
If they did, it would be a fundamentally different approach than their usual new product rollout where they start with a premium price point and then become more competitive over time.
Also noticed something interesting the other day on the Apple store: ship times for a 3GS were a week, but a 4 was 3-5 days.
I'm not sure what this means...
Time to pop the cork on some champaign after today's run! (Not withstanding the run up of the past two weeks!!)
It has been a nice run after being stuck with a 270 ceiling for what felt like years...
It has been a nice run after being stuck with a 270 ceiling for what felt like years...
Too right! I feel like popping a cork tonight ...
Too right! I feel like popping a cork tonight ...
Enjoy!
I'm not in for enough to justify champaign. Maybe I'll have some ginger ale...
(Now, if they pull a Google and go up 50+ in a day, well, then I will be with you on the true bubbly.
Enjoy!
I'm not in for enough to justify champaign. Maybe I'll have some ginger ale...
(Now, if they pull a Google and go up 50+ in a day, well, then I will be with you on the true bubbly.
I bet Soli is already out buying a new car :lol
Yes Google was something else today wasn't it?
Me too for sure but you know we will get shouted down and told that "It makes noooo difference".
If they don't announce a split, I'll be sooo angry, because I'm an idiot.
If they don't announce a split, I'll be sooo angry, because I'm an idiot.
I will just be sad and hurt, because Apple's board of directors don't understand how it is in their best interests to allow me to own $80 worth of the $285,000,000,000 worth of AAPL out there (and because I'm an idiot)
I will just be sad and hurt, because Apple's board of directors don't understand how it is in their best interests to allow me to own $80 worth of the $285,000,000,000 worth of AAPL out there (and because I'm an idiot)
I'm glad you framed it that way. Explain why they care (with specific emphasis on why they BENEFIT) whether you or the person selling the shares to you is the owner of those shares?
I'm glad you framed it that way. Explain why they care (with specific emphasis on why they BENEFIT) whether you or the person selling the shares to you is the owner of those shares?
My point was that they DON'T benefit. (facetious, like when you said you would be angry).
In fact, there are administrative costs associated with splitting shares and making required communications with a larger number of shareholders. The demand driven stock price increase from a number of $80 investors would not pay for these costs.