FBR Capital Positive on Apple (AAPL) into Q1 Print But Trims PT
Tweet Send to a FriendGet Alerts AAPL Hot Sheet
Price: $433.26 -0.3%
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade AAPL Now!
FBR Capital cut its price target on Apple (NASDAQ: AAPL) Wednesday but is by no means negative into today's earnings report.
The firm cut its price target from $725 to $675 but maintained an Outperform rating into Q12013 results after the close.
"While shares of Apple have been plagued this quarter by reports of order cuts to suppliers, we expect much of the supply volatility is related to Apple's attempts to diversify its manufacturing and supply chains," Scott Thompson comments. "Our checks throughout the quarter indicated exceptionally strong demand across all product segments and particularly for the iPhone 5 and iPad mini."
The analyst increased near-term units, revenue, and EPS estimates for the current quarter but decreased FY13 estimates to reflect the possibility of extended gross margin pressure from supply chain adjustments and a more competitive environment on ASPs and units.
The firm's F1Q13 revenue estimate is increasing to $56.3 billion from $54.8 billion and above the consensus $54.9 billion estimate. F1Q13 GM estimate goes up to 37.4% from 37.3%, below the consensus 38.7% estimate. F1Q13 EPS estimate improves to $13.65, up from $13.19 and above the $13.45 consensus estimate. They also decrease FY13/FY14 revenue estimates to $186 billion/$208 billion from $193 billion/$225 billion. FY13/FY14 EPS estimates fall to $46.16/$54.04 from $49.57/60.48 on more conservative ASP, units, and gross margin assumptions.
Commenting on recent speculation of a low-end iPhone, Thompson said he believes Apple may be able to generate more earnings growth from increasing the rate at which it refreshes and updates its higher-end products rather than sacrificing margin to capture low-end share.
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $504.77 yesterday, with a 52 week range of $419.55-$705.07.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The firm cut its price target from $725 to $675 but maintained an Outperform rating into Q12013 results after the close.
"While shares of Apple have been plagued this quarter by reports of order cuts to suppliers, we expect much of the supply volatility is related to Apple's attempts to diversify its manufacturing and supply chains," Scott Thompson comments. "Our checks throughout the quarter indicated exceptionally strong demand across all product segments and particularly for the iPhone 5 and iPad mini."
The analyst increased near-term units, revenue, and EPS estimates for the current quarter but decreased FY13 estimates to reflect the possibility of extended gross margin pressure from supply chain adjustments and a more competitive environment on ASPs and units.
The firm's F1Q13 revenue estimate is increasing to $56.3 billion from $54.8 billion and above the consensus $54.9 billion estimate. F1Q13 GM estimate goes up to 37.4% from 37.3%, below the consensus 38.7% estimate. F1Q13 EPS estimate improves to $13.65, up from $13.19 and above the $13.45 consensus estimate. They also decrease FY13/FY14 revenue estimates to $186 billion/$208 billion from $193 billion/$225 billion. FY13/FY14 EPS estimates fall to $46.16/$54.04 from $49.57/60.48 on more conservative ASP, units, and gross margin assumptions.
Commenting on recent speculation of a low-end iPhone, Thompson said he believes Apple may be able to generate more earnings growth from increasing the rate at which it refreshes and updates its higher-end products rather than sacrificing margin to capture low-end share.
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $504.77 yesterday, with a 52 week range of $419.55-$705.07.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Says Tesla (TSLA) 'Top Pick in U.S. Autos'
- UPDATE: Macquarie Downgrades Barrick Gold (ABX) to Underperform
- UPDATE: Vanda Pharmaceuticals (VNDA) Opens Higher; Lazard Raises PT to $17
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT ChangeRelated Entities
Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
