- Tools for Investors
- Stock News
- Investing Ideas
- Econ & Policy
- Personal Finance
S&P 500 (NYSE:SPY) component Apple (NASDAQ:AAPL) will unveil its latest earnings on Tuesday, July 24, 2012. Apple offers a range personal computers, mobile devices, and portable digital music and video players. The company also sells related software, services, peripherals, and networking solutions.
Apple Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of $10.37 per share, a rise of 33.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $9.95. Between one and three months ago, the average estimate moved up. It has risen from $10.33 during the last month. Analysts are projecting profit to rise by 69.3% versus last year to $46.85.
Past Earnings Performance: Apple is looking to top estimates for the third straight quarter. Last quarter, it reported profit of $12.30 per share against a mean estimate of net income of $10.03, and the quarter before, the company exceeded forecasts by $3.80 with profit of $13.87 versus a mean estimate of net income of $10.07.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
A Look Back: In the second quarter, profit rose 94.1% to $11.62 billion ($12.30 a share) from $5.99 billion ($6.40 a share) the year earlier, exceeding analyst expectations. Revenue rose 58.9% to $39.19 billion from $24.67 billion.
Wall St. Revenue Expectations: Analysts are projecting a rise of 30.7% in revenue from the year-earlier quarter to $37.34 billion.
Stock Price Performance: Between May 21, 2012 and July 20, 2012, the stock price had risen $73.92 (13.94%), from $530.38 to $604.30. The stock price saw one of its best stretches over the last year between February 2, 2012 and February 14, 2012, when shares rose for nine straight days, increasing 11.9% (+$54.34) over that span. It saw one of its worst periods between September 23, 2011 and October 4, 2011 when shares fell for eight straight days, dropping 7.9% (-$31.80) over that span.
Apple (NASDAQ:AAPL) enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 63.3% over the last four quarters.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 53.7% in the fourth quarter of the last fiscal year and more than twofold in the first quarter before increasing again in the second quarter.
Analyst Ratings: With 39 analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.58 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
Competitors to Watch: Hewlett-Packard, Dell, Google, Microsoft, Adobe Systems, IBM, Intel, Super Micro Computer, Inc., and Nokia Corporation (ADR).
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Hot Additional Stories:
Don't miss one of the biggest bull markets in history! Covers Gold, Silver, Gold & Silver stocks, and miners.
There's always a bull market in some sector! Find the best opportunities in commodities.