Wall Street’s Predictions For Apple Tomorrow: This Could Be The Best Quarter Ever


Apple Store hype

Apple will announce its quarterly earnings for the 2012 holiday season tomorrow, and investors are nervous. The company’s stock has been on quite the roller coaster ride since its $700 high back in September 2012. AAPL is now trading right around $500, which is the lowest it has been in more than six months.

Recent reports have said that demand for products like the iPhone is faltering. That’s why it may come as a surprise that Wall Street expects Apple to have its best earnings report ever tomorrow. So is it a good time to sell AAPL? Now may actually be the best time to buy.

Apple expected to report $52 billion in revenue for this first fiscal quarter of 2013, up from $46.33 billion in revenue this time last year. $36 billion was reported last quarter. Why the huge jump? Because the numbers that Apple are about to report tomorrow include sales from the 2012 holiday season. It doesn’t take a rocket scientist to know that iPhones and iPads were at the top of most kids’ Christmas lists.

And despite all the negative press and rumors of Apple cutting orders overseas due to weak demand, Wall Street is surprisingly optimistic. Sales will be up across the board.

We’ve collected a few well known analysts’ predictions in the chart below:

Revenue iPhones iPads Macs iPods
Horace Dediu, Asymco 60 billion 55.5 million 24.4 million 5 million 11.2 million
Peter Misek, Jefferies 59.55 billion 53 million 24 million 5.3 million 12.6 million
Gene Munster, Piper Jaffray 53.85 billion 45 million 25 million 4.83 million 12.3 million
Brian White, Tokepa 53.32 billion 43.06 million 26 million 5.13 million 9.62 million
Mark Moskowitz, J.P. Morgan 52.79 billion 47.95 million 20.06 million 5.29 million 13.53 million
Apple 52 billion N/A N/A N/A N/A

The general consensus is that Apple will report between $52-60 billion in revenue. Today Google reported $14.4 billion in revenue for last quarter. Samsung is the only competitor that comes close (and could possibly top Apple) with $53.6 billion in revenue for Q4 2012. Apple still rakes in way more profits than anyone else.

The iPhone 5 and iPad mini will likely play a huge role in iOS devices sales from the 2012 holidays. Analysts agree that between 24-26 million iPads were sold, and the new iPad mini is likely most responsible for driving sales with its $329 price tag. To put that into perspective, Microsoft has sold only 1 million Surface tablets.

Apple will hold a live earnings call on its investors page tomorrow at 2 p.m. PST/ 5 p.m. EST. As usual, Cult of Mac will be providing breaking coverage.

Source: Forbes

Image: Reuters

  • Steffen Jobbs

    It just seems that for a company of Apple’s money-making ability and yet investors are always scared, it seems like a rather poor investment for the average joe. It seems as though investors don’t trust the company at all despite it having an awful lot of reserve cash money in the bank.

    That dude Horace Dediu of asymco is really spending far too much time with his charts and spreadsheets. I think he’s definitely lost touch with reality. I doubt investors would be nervous if they even had a hint of that sort of revenue. Either way, Wall Street is going to downplay whatever Apple does and the share price will likely continue to drop. Hopefully, at some point in the future, Apple will have the last laugh.

  • ulyssesric

    This prediction, along with all the bearish stories last week, shows only one message to the world: nobody, I mean, NOBODY, in Wall Street knows what’s Apple doing.

    All the bearish stories last week are only weather balloons released by those far-seers, so that they can dig more signs and facts from the reaction around the global.

  • Alexander530

    Wall Street is so messed up.

  • Steven Quan

    Lets you know why Steve Jobs never ever listened to Wall Street. These “investors” are absolutely 100% clueless. You have a company with over $130B in cash reserves and a P/E ratio of $11ish and those numbers are based on what they did last quarter.

    AAPL is basically a bank with a technology company attached to it. They could take that cash, buy up a bunch of profitable companies and sit on the profits. These people sit there with their graphs and computers and think they can predict what will happen. They don’t look at the company.

    AAPL’s supply chain management is the best in the world. Any product they come up with will be cheaper for them to make than anyone else because their system is the most efficient in the world. AAPL’s clout and ability to solicit the lowest bid across multiple vendors for parts like screens, enables them to not only ensure supply will be there for demand, but allows them negotiating power as they pit one vendor’s price against the other.

    Even the company did a complete about face, and started sellling good to mediocre goods, they’d be able to do it at price that would either decimate the competition, or allow them to make hefty profit. Either way, they are positioned to win.

  • Jared_Boehm

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