Apple To Announce 4Q Results Oct 21
8:26 am, October 1st, 2008, Ed Sutherland
Apple Inc. announced Wednesday it will release its fiscal fourth quarter report Oct. 21, possibly ending speculation how the economic downturn hurt the Cupertino, Calif. company.
Earlier this week, Apple shares dived 18 percent following downgrades by several investment houses, including Morgan Stanley. The stock recovered a day later after Goldman Sachs and Citi retained “Buy” ratings for Apple, suggesting investors went overboard in their reactions.
Analysts said Apple likely did not repeat its third-quarter figures which saw a record $7.46 billion profit, outpacing Wall Street expectations. More than 11 million iPods and 717,000 iPhones were sold during the period.
Aug. 24, ThinkEquity analyst Vijay Rakesh kicked off suggestions Apple may not repeat its stellar 3Q performance. The analyst said low-cost “netbooks” may have dented back-to-school sales of Apple notebooks, which are usually priced higher than PC counterparts. Rakesh reduced his estimate for the 4Q to $7.8 billion from $7.9 billion – in line with Apple’s guidance issued in July.
The drumbeat continued the next day as BMO analyst Keith Bachman said “the weak economy has started to take a toll on Apple’s system business.” BMO cuts its 4Q earnings expectations to $7.88 billion, down from $8.03 billion.
The trimmed expectations were followed by news Apple’s 8GB iPhones were flying off the shelves at AT&T stores – but not being replaced. The move suggested to Pacific Crest Apple analyst Andy Hargreaves that Cupertino may be ready to drop the price of the 16GB version to $199 from $279.
On Wednesday, RBC Capital Markets analyst Mike Abramsky downgraded Apple shares to “sector perform” and cut the stock to $140 from $200, sparking a torrent of similar price shifts.
Posted by Ed Sutherland in Apple, News | Comment on this article
