Sure enough, Apple beat analyst estimates. It posted revenue of
While Mac and iPod shipments were in-line or better than what was expected with nearly 2.5 million Macs shipped and over 11 million iPods sold during the quarter, the number of iPhones sold came in a little light at 717,000.
Also, gross margin was 34.8%, down from 36.9% in the year-ago quarter. Specifically, the realized prices for iPods and Macs were lower.
Finally, Apple's guidance was well below analyst estimates. While this is normal for Apple, the company said it expects revenue of about
Apple shares remain down about 4.4% at $158.82, and Apple will likely open lower Tuesday.
[Update: The shares are dropping 9.2% in after-hours to below $150. Apple said fiscal 2009 gross margin will shrink to 30% as it moves to higher reliance on phone sales over Macintosh sales, and this seems to concern investors. Another issue that came up is Steve Jobs health, to which Apple's CFO said it was a private matter. Many would beg to differ.]
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Reader Comments (Page 1 of 1)
7-21-2008 @ 5:16PM
NYCBanker said...
blech! Disgusting! I bought in at $88 so im not to upset. Ill buy more tomorrow though, this stock and company has shown resilience over the past year, while everything else has taken a nose dive.
7-21-2008 @ 5:37PM
Stock Investor said...
I think this is an excellent opportunity to buy AAPL on the dip. Apple traditionally forecasts revenue and earnings that are well below analysts' estimates, so we shouldn't be worrying too much about this forecast. Apple hasn't yet reported sales from the iPhone, so the next quarter is going to be quite good for them.
Stock Investor
http://stockhaven.blogspot.com
7-21-2008 @ 6:37PM
rose said...
This sell off is way overdone. It was already down 30 points before the earnings. Shorts manipulating again. Force them to cover by buying the stock.
7-21-2008 @ 7:05PM
Sheldon L said...
Apple is fairly priced at a P/E under 25, and over priced above that. Leading into todays report it was over priced.
7-21-2008 @ 7:15PM
magus111 said...
Apple should fire the CFO. Every quarter's projection is a low ball and the stock got slammed.
7-21-2008 @ 8:17PM
Beltway Greg said...
Tsk, tsk. Another 10% drop. How many of these have we endured? If Oppenheimer had guided matched or exceeded the Street's expectations the stock would've run like Teddy up San Juan Hill. Here's the odd/irrational part. If he had guided above the expectations during the last conference call the stock would've easily exceeded say $185 during that same call. What happens now? A sell off tomorrow? Last year it went down to $115 before rebounding to $203. Overpriced? If Apple is over loved at $160 what is RIMM doing at $115 sporting a P/E in the 40s. Apple gave you Xmas in June. Fundamentals win in the end.
Beltway Greg
7-22-2008 @ 11:19AM
Vic said...
That should be Xmas in July, but who's counting? I agree though. It was snowing during afterhours and I think I heard a fat man in a red and white suit coming down the chimney. Thank you Street!