With many expecting Apple to unveil gangbuster numbers for its first quarter of 2011, analysts early today were busy raising earlier predictions. One observer increased both Apple’s expected earnings to above $24 billion, with 16 million iPhone and 7 million iPads sold.
JP Morgan’s Mark Moskowitz writes Apple could “beat our above-consensus revenue and earnings-per-share estimates of $24.778 billion and $5.38.” Many Wall Street experts had predicted the Cupertino, Calif. company would earn $24.226 billion for the first financial quarter of 2011.
Moskowitz in December estimated Apple sold 15.1 million iPhones, 6.7 million iPads and 4.3 million Macs. “We believe that the potential iPhone and iPad outperformance could add ‘at least’ $0.25 earnings-per-share upside,” he wrote Tuesday.
Earlier, Morgan Stanley’s Katy Huberty offered an earnings picture of $23.9B – below the Street consensus – but bullish iPhone numbers of 16 million units. Amateur investor Andy Zaky, who blogs at Bullish Cross, told readers today there is a noticeable split of expectations between bloggers and professional analysts. Unlike the Wall Street expectation for $24.38 billion in quarterly Apple revenue, bloggers are predicting around $26.4 billion.
“The spread between analysts and bloggers isn’t always necessarily very wide, but when it is, Apple tends to smash all expectations,” Zaky said.
Apple CEO Steve Jobs’ Monday departure for a medical leave of absence has thrown a long shadow on today’s financial results. Although Zaky considers a sell-off possible, others view it as limited.
“The Feb. 10 Verizon iPhone launch, and Apple’s ongoing market share momentum in tablets and PCs should refocus investors on the unrivaled model that Mr. Jobs and his team have built and sustained,” Moskowitz said.
The analyst could be right. What once was seen as a major corporate upheaval – the departure (for however long) of Apple’s guiding leader – is now being viewed as a manageable blip on the radar as Jobs’ control is exercised via Tim Cook and others.
