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Apple shares fall in after hours trading

Apple today reported revenue of $28.27B for the fourth quarter and $6.62B in net profit ($7.05 per diluted share). These numbers compare quite favorably to $20.34B and $4.31B ($4.64 per diluted share) for the same quarter last year.
Gross margins for Apple during Q4 were 40.3 percent.
During the quarter, Apple sold 17.07 million iPhones (21 percent growth year-over-year), 11.12 million iPads (166 percent growth), 4.89 million Mac computers (26 percent growth), and 6.62 million iPods (27 percent decline).

“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s CEO. “Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”
Speaking of the iPhone 4S, Apple announced yesterday that it sold over four million of the smartphones during its first weekend of availability -- this was over twice the number for the iPhone 4's initial rollout in 2010.
Despite the good news coming out Cupertino today, investors weren't too terribly impressed. Analysts were expecting revenue of $29.69B and earnings per share of $7.39. They also expected quarterly iPhones sales to be in the 18 million to 20 million range.

Apple shares are down over $26 in after hours trading.

Sources: Apple, CNBC

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seems high
By AssBall on 10/18/2011 5:11:31 PM , Rating: -1
They expected 20 million iphone's sold over the weekend? Either they are on crack or that number needs more context behind it.

RE: seems high
By Mathos on 10/18/2011 5:21:55 PM , Rating: 3
That was referring to the 17.07m total for the year I think. But this article also clearly points out some of the major issues that are causing our economy to be screwed. Namely the shareholders QQing about their ungodly high expectations not being met.

RE: seems high
By ClownPuncher on 10/18/2011 5:22:35 PM , Rating: 2
And so much weight being given to predictions made by market analysts.

RE: seems high
By BrgMx5 on 10/18/2011 5:37:48 PM , Rating: 4
That's 17.07m for the quarter only

RE: seems high
By Reclaimer77 on 10/18/2011 7:23:09 PM , Rating: 2
I can't blame them. Apple is a terribly overvalued company currently, just look at their market cap. The bubble will burst, but you can't blame them for wanting to keep it as high as possible as long as possible.

Not sure how this "screws" the economy though because in good times the "QQ" is there too. But that's fine, everyone has their own scapegoat lately for why things are bad.

RE: seems high
By yomamafor1 on 10/18/2011 8:04:46 PM , Rating: 2
Exactly. People especially like to take their gauntlet to the administration, and blame everything on it, even though it is pretty obvious the blames lie somewhere else....

RE: seems high
By TakinYourPoints on 10/19/2011 6:31:23 AM , Rating: 2
It isn't overvalued based on any technical or fundamental metric. It is surprisingly lowly valued for a tech. It's PE and PEG ratios are below other major techs like Google, Amazon, and Oracle, and growth continues to accelerate at a fast rate. The stock price is actually conservatively justified by its gross revenue and net profit.

Investor sentiment is not running it up irrationally, it is actually holding the price down based on fear that it is running ahead of itself. This is why you see consolidations for long periods of time like bouncing around the $300 level for almost a year before another leg up, even though its profits have long justified the price that it is at now.

The same actually applies to IBM. It has had a similar run up in stock price over the last three years, but it is still conservatively priced and justified by their balance sheet.

RE: seems high
By TakinYourPoints on 10/18/2011 6:42:01 PM , Rating: 3
From a pure technical trading standpoint the move makes sense.

You have to think that if there is a run in price in either direction in anticipation of news, that the market is already pricing the news in ahead of time. In the last two weeks there was a run from $370 to $420 in anticipation of earnings.

The market already priced the earnings into the stock ahead of time.

A dip after good news following a big run, even if it is positive, is very common in any stock. You know how people are bewildered by a stock dropping after good news or shooting up after "bad"? Same reasoning, the market has already priced the news in far ahead of time and it's already moved up a considerable amount. You have to look at the move prior to the event to get the whole story.

You can also see the same happen the opposite way. It has happened many times where AAPL or other stocks have dropped before earnings news, and then even when the news was to be expected it shot up afterwards.

Moves like this serve to take money away from amateur day-traders or extreme risk takers. Anyone else who has been holding for a long time or over the last month is fine. It's why trading on earnings or product announcements is as close as you can get to betting at the track. :)

RE: seems high
By nicholas1 on 10/18/2011 8:54:22 PM , Rating: 1
Well, After exceeding the market's expectations for so long, now Apple stumbled. And It blames it on rumors. Who's fault is that? Apple's? or Market's?

There is something interesting here..

"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes

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