Analyst: Apple Looking at Earnings Windfall

Evidence of “remarkably strong” demand for the iPhone 5 during the holiday quarter means that Apple (NASDAQ:AAPL) may post a healthy upside to consensus when it reports earnings next week, according to Goldman Sachs.

“Given the healthy supply ramp for the iPhone 5 and what we believe was remarkably strong demand, our [average selling price] and unit assumptions could prove too conservative,” analyst Bill Shope wrote in a note to investors, according to Barron’s. Shope, who reiterated a Buy rating and a $760 price target on the stock, added that he was modeling $53.58 billion in revenue and $12.58 per share in net profit on iPhone unit sales of 48.4 million.

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He acknowledged the importance of the earnings report considering the pressure Apple’s stock has been under lately.

“Given the remarkable compression in investor sentiment over the past several months and the increasingly intense battle between bears and bulls, we believe it is clear that this quarter will be a critical event for the stock,” he wrote, modeling the following three scenarios…