Apple Earnings Preview: Get Ahead of the Analysts

Apple (NASDAQ:AAPL) will report earnings after markets close today, Tuesday, July 23rd. Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers.

Here is your Cheat Sheet to Apple Earnings:

Earnings Expectations: Analysts expect earnings of $7.32 per share on revenues of $35.11 billion. Currently, the company’s P/E ratio stands at 10.11.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $10.48 to a profit $8.15. For the current year, the average estimate is a profit of $39.5, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Apple has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 32,479 42,905 65,225 108,249 156,508
Diluted EPS ($) 5.36 6.29 15.15 27.68 44.15

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 35,023.00 35,966.00 54,512.00 43,603.00
Diluted EPS ($) 9.32 8.67 13.81 10.09

Past Performance:
Apple has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)