Another Analyst Warns on Apple's (AAPL) Q3 Sales, Sees 'Unusually Conservative' Q4 Guidance
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Bernstein's Tony Sacconaghi issued warnings on Apple's (Nasdaq: AAPL) third-quarter sales figure and fourth-quarter guidance Friday morning, calls which follow similar action from a number of other sell-side firms recently. These analysts are positioning themselves ahead of Apple's quarterly report on Tuesday, July 24th.
Sacconaghi said there is a "reasonable probability" Apple will miss on third-quarter sales. The analyst consensus estimate currently sits at $37.35 billion.
Sacconaghi is modeling for Apple's fourth-quarter outlook to be "unusually conservative" compared to the Street's estimates. He believes it will be difficult for the company to report quarter-over-quarter growth in sales unless the iPhone 5 is unveiled during the quarter (the third quarter according to the calendar). Sacconaghi said he sees the launch of the iPhone 5 in Apple's fourth quarter as unlikely given historical precedence, commentary from Qualcomm, and chatter from his checks in the supply chain.
The Bernstein analyst is anticipating Apple to offer fourth-quarter EPS guidance in the range of $8-$8.25 on sales of $33-$34 billion. These figures compare to consensuses of $10.29 per share for earnings and $38.25 billion in sales.
Sacconaghi reassured that near-term risks are strictly timing related, and that there is no change to his long-term thesis which places Apple as one of his top stocks.
Bernstein maintains an Outperform rating and $750 price target on shares of Apple.
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Sacconaghi said there is a "reasonable probability" Apple will miss on third-quarter sales. The analyst consensus estimate currently sits at $37.35 billion.
Sacconaghi is modeling for Apple's fourth-quarter outlook to be "unusually conservative" compared to the Street's estimates. He believes it will be difficult for the company to report quarter-over-quarter growth in sales unless the iPhone 5 is unveiled during the quarter (the third quarter according to the calendar). Sacconaghi said he sees the launch of the iPhone 5 in Apple's fourth quarter as unlikely given historical precedence, commentary from Qualcomm, and chatter from his checks in the supply chain.
The Bernstein analyst is anticipating Apple to offer fourth-quarter EPS guidance in the range of $8-$8.25 on sales of $33-$34 billion. These figures compare to consensuses of $10.29 per share for earnings and $38.25 billion in sales.
Sacconaghi reassured that near-term risks are strictly timing related, and that there is no change to his long-term thesis which places Apple as one of his top stocks.
Bernstein maintains an Outperform rating and $750 price target on shares of Apple.
Visit our Analyst Ratings page to track all the market-moving analyst action on shares of Apple.
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