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Help, Guides, and News on making the Switch To Apple Macintosh Computers
Apple to Report Earnings
Apple's earnings are due out today at 2pm PST. Wall Street analysts are looking for earnings ranging from 59 cents to 69 cents per share on revenue of $5.7 billion for the December quarter. Estimate have moved up following Steve Jobs' keynote speech at last week's Macworld Expo. The EPS estimates ranges from $1.95 to $2.53. Fiscal year 2006 estimates range from $19.4 billion to $22.3 billion, an increase of $2 billion to $3 billion over 2005.
I am looking for signs of increased Macintosh computer sales. Furthermore, I am looking for more evidence of the "iPod halo effect". Increased Macintosh sales are a key metric as it points to ongoing strengh and more consumers to making the "Switch To A Mac". I would however be open to the possibility that Macintosh sales lagged as consumers may have held off on purhases in anticipation of new hardware announcements at Macworld. Steve Jobs already commented that iPod sales reached fourteen million units in the quarter.
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CPU sales didn't grow in pace with last quarter, actually seeing a sequential decline, as a result last quarters data is a poor guide to modeling this quarter. In order them them to get a post tax $0.90 EPS they'd have had to sell another 750,000 or more CPU's, which they failed to do.
Hence, my estimate, which put it at $0.91 based on Apple Store orders, was wrong because the ratio of iPod orders to CPU orders this quarter was SIGNIFICANTLY higher than it's been in ANY previous quarter.
iPods earn less money per unit, hence less revenue, and less EPS . . . . exactly HOW much less, we won't know for another few hours.