Apple Inc. (AAPL) 2013 Performance A “Year To Forget”: Topeka Capital


Brian White, analyst at Topeka Capital Markets, opined that the performance of Apple Inc (NASDAQ:AAPL) for the fiscal 2013 will be considered by investors as a “year to forget.” However, he believes that the iPhone and iPad maker will come back strong in 2014.

Apple Inc. (AAPL) 2013 Performance A “Year To Forget”: Topeka Capital

White believes that Apple Inc. (NASDAQ:AAPL) will experience its lowest point of profit cycle in its March quarter earnings result. He also thinks the company is preparing for a strong turnaround. The analyst projected that the company’s recovery will be realized next year.

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In a note to investors on Tuesday, White issued a lower earnings estimate for Apple Inc. (NASDAQ:AAPL) for the third quarter of fiscal 2013.  He projected that the company will achieve $36.5 billion revenue, lower than its previous estimate of $43.3 billion. He also reduced its earnings estimate from $10.42 per share to $7.83 per share.

White estimated that the iPhone and iPad maker’s earnings per share for fiscal 2013 will decline by 1 percent, which will be the first annual profit decline for the company since 2003.

By next year, White projected that Apple Inc. (NASDAQ:AAPL) will start to experience growth starting in October as the company broadens its iPhone line up with a less expensive model. There have been speculations that the tech giant is working to produce a cheaper iPhone without the need for a subsidy from wireless carriers.

White is hoping Apple Inc. (NASDAQ:AAPL) will be able to launch its new line of devices next year including a full-fledged television set, and the iWatch. In addition, he also expects the company to strike a deal with China Mobile to start selling iPhones by 2014. China Mobile is the largest telecommunications carrier worldwide.

Furthermore, White thinks that Apple Inc. (NASDAQ:AAPL) should leverage its $137.1 billion available balance in addition to its new growth opportunities to attract investors and to build a safety net on its stock. White has been vocal about his recommendation that the company should distribute a higher dividend to shareholders,

Topeka Capital Markets maintained its buy rating for shares of Apple Inc. (NASDAQ:AAPL) with a 12-month price target of $888 per share despite lowering its expectation for the company. The stock of the company is trading around $407.40 per share, up by more than 2 percent on Tuesday around 3:36 PM, Eastern Time.