Earnings per share Stories February 12, 2015

Two days after AAPL hits highest market cap ever, billionaire investor Carl Icahn values it at $1.3 trillion

Two days after Apple set a new record for the highest market capitalization of any company, valuing it at more than $700B, billionaire investor Carl Icahn has suggested the true value of the company is close to double this, at $1.3T.

Icahn, who is one of the company’s ten biggest shareholders with stock worth around $6.5B, says that a realistic valuation of the company would be 20 times its earnings per share. Factoring in Apple’s cash reserves of $178B, that would give a share price of $216–for a total company value of $1.3T.

Icahn notes that while he has previously been criticized for over-optimistic valuations of AAPL, 31 analysts have “dramatically increased” their earnings-per-share estimates in the past fortnight.

We have gained further confidence in our thesis, increasing the forecasted EPS for FY 2015 in our model from $9.60 to $9.70, and now believe the market should value Apple at $216 per share.  This is why we continue to own approximately 53 million shares worth $6.5 billion, and why we have not sold a single share.

Icahn has consistently urged Apple’s board to increase the pace of its stock buyback program, his last call coming at a time when the shares were trading at $100. At the time of writing, shares were trading at $124.88. Apple recently set another world record, announcing the highest ever quarterly profit of any company.

Earnings per share Stories January 28, 2014

Despite Apple returning to growth for the first time in a year, AAPL stock opened almost 8 percent down, as iPhone sales fell below analyst predictions and Apple’s mid-point guidance on Q2 earnings forecast was for zero growth.

Analysts had predicted 55.3M iPhone sales, while Apple reported sales of 51M. Analysts were also disappointed in Apple’s guidance for Q2 of $42-44B, as the mid-point of $43B would not show any growth over the same quarter last year …  expand full story

Earnings per share Stories January 2, 2013

Apple just announced on its Investor Page that it would report its Q1 2013 earnings Jan. 23. As it does once a quarter, Apple will issue a press release at 4:30 p.m. EST with the numbers and follow with a conference call at 5 p.m. EST to discuss the results with CEO Tim Cook, CFO Peter Oppenheimer, and more. The report will give us a close look into how Apple fared during the holiday shopping season and its outlook for 2013. As of the last earnings report in October, Oppenheimer said he expected revenue of about $52 billion and diluted earnings per share of about $11.75 for Q1 2013. Past numbers, questions from investors on the conference call typically bring out new, interesting pieces of information from Apple, and you bet 9to5mac will provide full coverage. [Apple]

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Earnings per share Stories October 26, 2012

Less than 24 hours after releasing its fourth-quarter earnings results, Apple stock has now dropped below $600 for the first time since July. Apple reported Q4 earnings slightly higher than the analysts expected (apart from iPad sales, with 14 million units sold coming in lower than most estimates). Apple posted $8.2 billion in net profit with $36 million in revenue and diluted earnings per share of $8.67. That compares to an average of about 15.5 million iPads, earnings per share of $8.75, and $35.51 billion in revenue expected by the analysts.

During Apple’s Q4 results conference call yesterday, Apple CEO Tim Cook answered questions about iPhone 5 supply and demand and shortages going forward. According to Cook, production is increasing but the company is still in a “significant state of backlog.” He confirmed Apple still plans to roll out the device to 100 countries by the end of the year. This morning—the iPad mini, and fourth-generation iPad, officially went up for pre-order. Shortly after, Apple sold out of some models and pushed back shipping times.

Cook remained confident that component shortages would not hold back iPhone and iPad sales, stating he is “pleased with the current volume of output.” He did, however, warn about significant iMac delays headed into the holidays:

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Earnings per share Stories December 16, 2011

‘Analysts getting overzealous’

Analyst Andy Zaky overestimated Apple earnings by 20 percent last quarter. Here’s his take right after: Why Apple’s big miss doesn’t matter. This miss is just a minor blip due to analysts getting overzealous with their estimates. Today, he wrote: Apple Fiscal Q1 2012: The Biggest Earnings Blowout in History  

Earnings per share Stories October 18, 2011

Apple Q4 earnings call live blog

We’ll be following along with Apple’s earnings call in a few minutes here. Also expect some separate posts for the “Best Quarter Ever” Press Release and any other news that comes our way. Apple’s summary of the earnings data: Update: Apple announces Q4 earnings Live blog archived below:

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