Apple shares bleed red ahead of afternoon earnings report

Posted:
in General Discussion edited January 2014
Shares of Apple Inc. joined the broader technology sector in a brief free-fall early Tuesday morning as growing fears of a recession and slowing global economy weighed heavily on the Nasdaq stock market.



At one point, the company's shares were down over $11.50 or more than 7.2 percent to $149.80 before fighting back to regain approximately half of those losses. Overall, Apple shares have steadily fallen more than 15 percent since the start of the new year.



The latest skid comes just hours before the company will release results for its fiscal first quarter ended December. Analysts on average are expecting the gadget maker to report earnings of $1.62 per share on sales of $9.47 billion.



With rough iPhone sales figures having been disclosed at last week's Macworld Expo and NPD iPod estimates presumed to be fairly representative, much of Wall Street's attention is expected to zero in on Apple's Mac sales number.



On average, the Street is looking for record-setting Mac sales of 2.3 million units, which would best the company's existing record set last quarter of 2.164 million units.



Apple said in October it expects first quarter earnings of approximately $1.42 per share on revenues of $9.2 billion for the quarter.



Shaw Wu, an analyst with American Technology Research, believes those estimates will again prove conservative. He's modeling slightly above consensus estimates at per-share earnings of $1.63 on sales of $9.4 billion.



"As in previous quarters, we believe the gross margin will likely be the biggest swing factor in driving earnings-per-share upside or downside dependent on product mix and the ability to capitalize on favorable component pricing," he said.



Wu believes Apple will report quarterly gross margin of 33 percent, compared to the company's estimated 31 percent and the 31.2 percent reported for the year-ago quarter.



Looking ahead to the current quarter, the AmTech analyst believes Apple will continue with its conservative guidance "to help set more realistic expectations." He's currently modeling per-share earnings of $1.10 on sales $6.9 billion, noting that iPods have historically seen a seasonal decline during the quarter.



Apple will report earnings from its fiscal first quarter ended December following today's closing bell. AppleInsider will provide its usual in-depth coverage of the report and subsequent conference call.
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Comments

  • Reply 1 of 68
    MacProMacPro Posts: 17,878member
    Buy people buy!!!!
  • Reply 2 of 68
    jeffdmjeffdm Posts: 12,946member
    Quote:
    Originally Posted by digitalclips View Post


    Buy people buy!!!!



    Is there a good way to get a stock trading account in a timely manner? I don't do much by the way of investments outside of mutual funds in a 401k.
  • Reply 3 of 68
    kasperkasper Posts: 941member, administrator
    Quote:
    Originally Posted by JeffDM View Post


    Is there a good way to get a stock trading account in a timely manner? I don't do much by the way of investments outside of mutual funds in a 401k.



    You can set one up but you'll likely not be able to fund it in time.



    Best,



    K
  • Reply 4 of 68
    It matters little what is said on the call - in its usual fashion Apple will refuse to answer questions. Just listen to COO Oppenheimer's past responses on these meaningless calls.



    The bottom line is that any investor who doubled his money on AAPL in 2007 can do so again in 2008.



    Only this time you have to sell the stock short. It's the economy, not the company, that's the issue.



    Let's think why, for all those blinded Apple fanboys out there:



    1 - The world is at the start of a multi-quarter recession

    2 - Home equity lines of credit are tapped out

    3 - People are losing jobs- not just blue collar and government jobs (PC buyers) but nice, clean jobs in finance and management (Mac buyers)

    4 - No one needs another iPod or Mac when the priority is putting food on the table and gas in the SUV



    But even if you deny all of the above, just name another $100bn public company with ZERO succession planning. Just one whiff of another cancer scare (God forbid) for Mr. Jobs, or maybe a fall on that new yacht of his, and say goodbye to the stock and the company. Shame really. They clearly make superior products. And any analyst worthy of the title should be asking about that, not about earnings per share projections.



    BTW, we are a 100% Mac/iPod/iPhone/iDog (unannounced but coming soon) household. That doesn't make the stock a buy either.
  • Reply 5 of 68
    Quote:
    Originally Posted by Thomaspin View Post


    It matters little what is said on the call - in its usual fashion Apple will refuse to answer questions. Just listen to COO Oppenheimer's past responses on these meaningless calls.



    The bottom line is that any investor who doubled his money on AAPL in 2007 can do so again in 2008.



    Only this time you have to sell the stock short. It's the economy, not the company, that's the issue.



    Let's think why, for all those blinded Apple fanboys out there:



    1 - The world is at the start of a multi-quarter recession

    2 - Home equity lines of credit are tapped out

    3 - People are losing jobs- not just blue collar and government jobs (PC buyers) but nice, clean jobs in finance and management (Mac buyers)

    4 - No one needs another iPod or Mac when the priority is putting food on the table and gas in the SUV



    But even if you deny all of the above, just name another $100bn public company with ZERO succession planning. Just one whiff of another cancer scare (God forbid) for Mr. Jobs, or maybe a fall on that new yacht of his, and say goodbye to the stock and the company. Shame really. They clearly make superior products. And any analyst worthy of the title should be asking about that, not about earnings per share projections.



    BTW, we are a 100% Mac/iPod/iPhone/iDog (unannounced but coming soon) household. That doesn't make the stock a buy either.



    I can't wait until Mel Gross rips you a new one.
  • Reply 6 of 68
    Quote:
    Originally Posted by Thomaspin View Post


    4 - No one needs another iPod or Mac when the priority is putting food on the table and gas in the SUV



    Well I can see what the problem is here - The SUV
  • Reply 7 of 68
    Quote:
    Originally Posted by Thomaspin View Post


    It matters little what is said on the call - in its usual fashion Apple will refuse to answer questions. Just listen to COO Oppenheimer's past responses on these meaningless calls.



    The bottom line is that any investor who doubled his money on AAPL in 2007 can do so again in 2008.



    Only this time you have to sell the stock short. It's the economy, not the company, that's the issue.



    Let's think why, for all those blinded Apple fanboys out there:



    1 - The world is at the start of a multi-quarter recession

    2 - Home equity lines of credit are tapped out

    3 - People are losing jobs- not just blue collar and government jobs (PC buyers) but nice, clean jobs in finance and management (Mac buyers)

    4 - No one needs another iPod or Mac when the priority is putting food on the table and gas in the SUV



    But even if you deny all of the above, just name another $100bn public company with ZERO succession planning. Just one whiff of another cancer scare (God forbid) for Mr. Jobs, or maybe a fall on that new yacht of his, and say goodbye to the stock and the company. Shame really. They clearly make superior products. And any analyst worthy of the title should be asking about that, not about earnings per share projections.



    BTW, we are a 100% Mac/iPod/iPhone/iDog (unannounced but coming soon) household. That doesn't make the stock a buy either.



    I love the people that tell you to short after the stock dropped 25 percent. Give me a break. I can tell you the insiders are buying stocks right now and the best performing fund managers are buying stocks. Let people panic and sell irrationally. That is the easiest group to make money on.
  • Reply 8 of 68
    g3prog3pro Posts: 669member
    Quote:
    Originally Posted by jivebaby View Post


    I love the people that tell you to short after the stock dropped 25 percent. Give me a break. I can tell you the insiders are buying stocks right now and the best performing fund managers are buying stocks. Let people panic and sell irrationally. That is the easiest group to make money on.



    I can tell you that in reality it's the insiders who are selling the overpriced AAPL stock, and it's the irrational small time investors that are holding onto ever-decreasing in value stock.



    You've been had by the insiders, you just don't realize it yet.
  • Reply 9 of 68
    WHAT THE HELL DO YOU MEAN BUY? It said the shares recessed like crazy! WTF..... you don't know anything. If you buy, you will lose. The shares went down because of the MacBook Air.
  • Reply 10 of 68
    Quote:
    Originally Posted by thebeat View Post


    WHAT THE HELL DO YOU MEAN BUY? It said the shares recessed like crazy! WTF..... you don't know anything. If you buy, you will lose. The shares went down because of the MacBook Air.



    You are kidding right?



    The entire world market is down right now. The shear fear of recession is bringing the entire economy down.
  • Reply 11 of 68
    Um. Right. It was all the MacBook Air's fault.
  • Reply 12 of 68
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by SpamSandwich View Post


    I can't wait until Mel Gross rips you a new one.



    HAHA





    Quote:
    Originally Posted by thebeat View Post


    WHAT THE HELL DO YOU MEAN BUY? It said the shares recessed like crazy! WTF..... you don't know anything. If you buy, you will lose. The shares went down because of the MacBook Air.



    "It said the shares recessed like crazy" which means the stock is cheaper now. Investors usually instruct people to buy low and sell high. It seems to work out better that way.
  • Reply 13 of 68
    MacProMacPro Posts: 17,878member
    Quote:
    Originally Posted by JeffDM View Post


    Is there a good way to get a stock trading account in a timely manner? I don't do much by the way of investments outside of mutual funds in a 401k.



    You can usually set up an account online quickly through your bank or an investment company. I use Wachovia to do my on line buying, it is easy, cheap and fast. AAPL is a bargain right now.
  • Reply 14 of 68
    g3prog3pro Posts: 669member
    Quote:
    Originally Posted by digitalclips View Post


    You can usually set up an account online quickly through your bank or an investment company. I use Wachovia to do my on line buying, it is easy, cheap and fast. AAPL is a bargain right now.



    AAPL is a bargain... at a P/E of 40 and a F P/E of 30? That is the most idiotic thing I've heard in a long time.
  • Reply 15 of 68
    MacProMacPro Posts: 17,878member
    Quote:
    Originally Posted by roehlstation View Post


    You are kidding right?



    The entire world market is down right now. The shear fear of recession is bringing the entire economy down.



    I am willing to bet APPL will be a great long term investment. I stress long term.
  • Reply 16 of 68
    MacProMacPro Posts: 17,878member
    Quote:
    Originally Posted by g3pro View Post


    AAPL is a bargain... at a P/E of 40 and a F P/E of 30? That is the most idiotic thing I've heard in a long time.



    Ok fine, no problem. we will see, check back in a year or two from now.
  • Reply 17 of 68
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by digitalclips View Post


    Ok fine, no problem. we will see, check back in a year or two from now.



    It's been said by someone year over year that Apple is going to fall yet it's gone up 80x in 10 years. There will always be someone telling you sell your stock for some paranoid, Chicken Little reason.



    I don't pay as much attention as P/E as I do to the companies current and future outlook. Apple is very strong; it will be awhile before anything will be able to stop their preverbal "rolling ball". But you knew that already.
  • Reply 18 of 68
    MacProMacPro Posts: 17,878member
    Quote:
    Originally Posted by solipsism View Post


    It's been said by someone year over year that Apple is going to fall yet it's gone up 80x in 10 years. There will always be someone telling you sell your stock for some paranoid, Chicken Little reason.



    I don't pay as much attention as P/E as I do to the companies current and future outlook. Apple is very strong; it will be awhile before anything will be able to stop their preverbal "rolling ball". But you knew that already.



    Thanks ... I agree. Put it this way, if AAPL is through the floor for good God help most other stocks!
  • Reply 19 of 68
    Quote:
    Originally Posted by solipsism View Post


    It's been said by someone year over year that Apple is going to fall yet it's gone up 80x in 10 years. There will always be someone telling you sell your stock for some paranoid, Chicken Little reason.



    I don't pay as much attention as P/E as I do to the companies current and future outlook. Apple is very strong; it will be awhile before anything will be able to stop their preverbal "rolling ball". But you knew that already.



    I may seem stupid, but I ask one question: Who (If anyone) is workig on the next generation OS?
  • Reply 20 of 68
    jeffdmjeffdm Posts: 12,946member
    Quote:
    Originally Posted by roehlstation View Post


    You are kidding right?



    The entire world market is down right now. The shear fear of recession is bringing the entire economy down.



    Never talk facts and reason with a hater. They're out to see their on theories confirmed through selective information gathering, rather than look at the big picture.
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