Apple's earnings for Q2 2010 came out to $3.33/share vs an average analysts estimate of $2.45/share. Their profit margin came out higher than expected and top line revenue was $13.5 Billion vs $12.04 Billion est.
2.94 million Mac units sold
10.8 million iPod units sold
8.75 million iPhone units sold
Guidance is Q3 revenue of $13 Billion to $13.4 Billion
This is just a blow out performance. I'm surely regretting not creating a large position in this unbelievable company. After hours action is showing a 7% pop. Some experts warn of a near term pull back for profit taking.
Do not rely solely on the opinions of this blog or any other site when making an investment decision. Any investment could result in the risk of loss of capital. Please consider seeking professional advice before initiating your investment ideas.
Tuesday, April 20, 2010
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Reminds me your other post:
ReplyDeleteTen Stocks That Most Frequently Appear In Hedge Funds’ Top Holdings
Apple – AAPL <===== Must be a reason
Pfizer- PFE
Bank of America- BAC
Google- GOOG
JPMorgan Chase- JPM
Microsoft- MSFT
Mastercard- MA
DirectTV- DTV
Wells Fargo- WFC
CVS Caremark- CVS
That is why they call hedge funds holdings "smart money." For the sake of figuring out what today's earnings could mean for the stock, we can try and determine a possible target price.
ReplyDeleteCurrently the average analyst estimated EPS for this year is $12.06. We can anticipate that these figures will be revised to the upside very quickly. Even if we maintain a conservative outlook and project that they will come in lower than last quarter's EPS, say $3.00 for Q3 and Q4, and accept that investors will pay the current multiple of 23.83x. We could then expect a target price of approximately $310.
Q1 Actual EPS= 3.67
Q2 Actual EPS= 3.33
Q3 Estimated EPS= 3.00
Q3 Estimated EPS= 3.00
2010 Estimated EPS= $13, which is a dollar more than the current estimate.
Target Price= $13 x 23.83= $309.79
Do not rely solely on the opinions of this blog or any other site when making an investment decision. Any investment could result in the risk of loss of capital. Please consider seeking professional advice before initiating your investment ideas.