Analyst: Apple Inc. (AAPL) FQ1 Results Expected To Be Strong

Apple Inc. (NASDAQ:AAPL) shares have been given an Outperform rating from analysts at Pacific Crest, who expect that the company’s first fiscal quarter results will be strong.

Analyst: Apple Inc. (AAPL) FQ1 Results Expected To Be Strong

In a report issued to investors on Tuesday, analysts said strong sales of the iPhone should drive those results over the expectations of Wall Street. They project that Apple Inc. (NASDAQ:AAPL) will sell more than 50 million iPhones and more than 23 million iPads in its first fiscal quarter. In their estimates, that puts the company’s first fiscal quarter revenue at $58.3 billion and its earnings per share at $14.79. That’s above the estimates from Wall Street, which are $54.5 billion in revenue and $13.33 earnings per share.

Pacific Crest analysts said Apple Inc. (NASDAQ:AAPL) could run into some trouble in its second fiscal quarter. Their sell-side estimates don’t leave much room for outperformance. They expect revenue for the company’s second fiscal quarter to be less than $41 billion—significantly less than Wall Street’s $47.1 billion revenue estimate for Apple’s second fiscal quarter.

The report also said that in order for investor concerns to be alleviated, the guidance for Apple Inc. (NASDAQ:AAPL)’s second fiscal quarter must be at or above 38 percent.

Pacific Crest is keeping its price target at $565 per share, which is based on 12.5 times their 2013 fiscal year earnings per share estimate of $45.13. They believe that the company remains “well-positioned to maintain its dominance of the high-end smartphone and tablet markets.” However they also believe that market saturation will slow the company’s growth during its 2013 fiscal year and beyond.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at [email protected]

Be the first to comment on "Analyst: Apple Inc. (AAPL) FQ1 Results Expected To Be Strong"

Leave a comment