Apple Announces Record Q4 Earnings, Investors Aren't Impressed
October 18, 2011 4:51 PM
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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
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RE: seems high
10/19/2011 6:31:23 AM
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.
"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke
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