Save from as low as €40 per month Change modify pause
Apple shares down 7% after hours even though the company posted its best fiscal Q3 profit ever. The problem at this point is whether the company can continue making hit products.
• Iphone sales came in line with our estimates of 47.5mln however fell short of the market estimates.
• No mention of unit sales of the iwatch – however it was mentioned that sales were modest – company has to keep banking on the iphone. (The company probably shipped at least 1.9 million smartwatches since it debuted in April, short of the 3 million to 5 million projected by analysts, according to data compiled by Bloomberg.)
Financials
• Sales were reported at $49.6bn we are forecasting $44.9bln
• EPS were reported at $1.86 in line with our estimate of $1.87
What’s next
• Expected launch of new iphones in September
Apple shares have gone up 20% YTD much better than the NASDAQ (11%) and the S&P500 (4%).
Based on our previous valuation and initial over reaction to the results, I would not rush into selling the shares. We will be going through our model in the coming days.
Good day and happy trading!
Kristian Camenzuli
You are signing up to receive news, updates, general market announcement, articles and product or service marketing. By signing up you are consenting to our privacy policy and can unsubscribe at any time.