Is An Apple In The Hand Worth 2 On The Tree

Is An Apple In The Hand Worth 2 On The Tree

Wall Street analysts are all singing the same tune when it comes to Apple Inc. (NASDAQ:AAPL) today. There seems to be a concensus among them regarding the company’s future-it is bright and rosy red! Although, some predict cuts in iPhone,Mac, or iPad estimates, they all agree that Apple is doing fairly well in a weak market.

Hendi Susanto of Gabelli & Co. estimated a 3/4 million unit cut from the projected 15.5 million suggested by a previous projection. She blames the cut on the poor economy, but still believes that Apple will show nearly $39 billion in revenue for the quarter at a price of $10.55 per share. She also projected cuts in the sales of iPhones because of the launch of the new model in October of this year. Susanto further predicts that the sale of the mini iPad will not hurt its larger sibling,the iPad, but will rather “open up new market opportunities” for the company.

Another respected analyst, Gene Munster of Piper Jaffray also believes Apple has a strong base to build on. He has projected 28 million plus iPhone units sold last quarter. This estimate is above the average of 25-27 million. He has however, joined in with most of the other “gurus” in forecasting a report of 16 million iPad units. Apple Inc. (NASDAQ:AAPL) will have to show around $39.7 billion in this report, in order to keep up with its “normal” outperformance record of 6%. Munster, does not believe this will be the case, as he has projected earnings of $37.1 billion and a share price of $10.17. He estimates a drop of just less than a billion dollars for next quarter, if Apple follows the trend it has set since 2006. He does mention that he expects a more conservative quarter this year, due to the release of the new iPhone 5 in the following quarter.

Matthew Hoffman of Cowen and Co is still standing firm by his previous predictions of outperformance by Apple. He projects a revenue of nearly $38 billion dollars and $10.16 per share. He says his surveys are showing that many consumers are joing the growing tablet trend. This accounts for his model, showing iPad sales at 18.5 million. He says that iPhone sales will be down 20%, quarter over quarter.

William Power, a top analyst for R.W. Baird also believes Apple Inc. (NASDAQ:AAPL) will again outperform this quarter. His projections include $36.2 billion in revenue, and $10.19 per share. He raised this price per share from a previous projection of $9.90 and says he believes that the U.S. market for iPhones will liquidate 7 million iPhones in Fiscal Quarter 3 for this year. He states that Apple sold around 15.3 million iPads last quarter. He further suggests that iPhone unit sales could be as high as 25.1 million units for the 4th quarter, while the general feeling of most analysts seem to indicate 27 million to be a closer figure.

There you have it. The analysts all agree. Apple Inc. (NASDAQ:AAPL) is a strong company with a “bulldog” attitude in a slow economy. The company is definitely holding its head above water, while many others go down in the flotsam of a soft economy. This may be one time when it’s ok to disregard the old proverb, and go ahead and put all your “Apples” in one basket.