Sterne Agee's Wu Raises Estimates on Apple (AAPL); Demand Strong and Supply Improving
Tweet Send to a Friend
Get Alerts AAPL Hot Sheet
Price: $432.00 +0.45%
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Trade AAPL Now!
Sterne Agee's Shaw Wu raised estimates on Apple (NASDAQ: AAPL) Tuesday after checks showed iPhone supply is improving sharply.
"Consistent with our supply chain work in early November, lead times on iPhone 5 continue to improve, now at 2-4 days vs. 3-4 weeks," Wu comments. "From our understanding, this is despite still robust demand due to improving yields and thus better availability and profitability."
Wu said iPad mini appears constrained as stronger than expected sales outstrip supply while Macs likely light due to new iMac constraints.
The firm is raising iPhone unit forecast to 47.3 million units (from 46.5 million). They are leaving iPad unit forecast unchanged at 25 million units (consensus at 23-24 million) and reducing Mac outlook to 5 million (from 5.1 million) but a bit below consensus at 5.2-5.3 million. In addition, they are raising gross margin assumption to 38.5% (from 38%) due to improving yields and thus profitability of iPhone 5.
The firm is now at $54.6 billion in revenue and $13.70 in EPS (from $53.7 billion and $13.15 in EPS) vs. consensus at $54.4 billion and $13.30. For FY13, $193.4 billion and $49.50 in EPS (from $192.8 billion and $47.00 in EPS) vs. consensus at $193 billion and $49.28 in EPS and for FY14, $222.4 billion and $58.50 in EPS (from $221.2 billion and $58.00 in EPS) vs. consensus at $221 billion and $57.95 in EPS.
The firm is maintaining its Buy rating and $840 based on a 13.7x multiple on CY13 EPS of $52.53 plus $128 in net cash.
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 $586.19 yesterday, with a 52 week range of $377.68-$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
"Consistent with our supply chain work in early November, lead times on iPhone 5 continue to improve, now at 2-4 days vs. 3-4 weeks," Wu comments. "From our understanding, this is despite still robust demand due to improving yields and thus better availability and profitability."
Wu said iPad mini appears constrained as stronger than expected sales outstrip supply while Macs likely light due to new iMac constraints.
The firm is raising iPhone unit forecast to 47.3 million units (from 46.5 million). They are leaving iPad unit forecast unchanged at 25 million units (consensus at 23-24 million) and reducing Mac outlook to 5 million (from 5.1 million) but a bit below consensus at 5.2-5.3 million. In addition, they are raising gross margin assumption to 38.5% (from 38%) due to improving yields and thus profitability of iPhone 5.
The firm is now at $54.6 billion in revenue and $13.70 in EPS (from $53.7 billion and $13.15 in EPS) vs. consensus at $54.4 billion and $13.30. For FY13, $193.4 billion and $49.50 in EPS (from $192.8 billion and $47.00 in EPS) vs. consensus at $193 billion and $49.28 in EPS and for FY14, $222.4 billion and $58.50 in EPS (from $221.2 billion and $58.00 in EPS) vs. consensus at $221 billion and $57.95 in EPS.
The firm is maintaining its Buy rating and $840 based on a 13.7x multiple on CY13 EPS of $52.53 plus $128 in net cash.
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 $586.19 yesterday, with a 52 week range of $377.68-$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
- Terex (TEX) Suffers from Weakness in Europe; Read-Through For Manitowoc (MTW)
- UPDATE: Global Equities Starts Tesla Motors (TSLA) at Overweight
- Price Stability for Micron (MU) Means a Higher Stock Price - Jefferies
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ChangeRelated Entities
Sterne Agee
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!
