Wells Fargo Maintains an 'Outperform' on Apple (AAPL); Q4 iPhone Units Stall Ahead Of 4S--Expect Rebound In Q1

Wells Fargo maintains an 'Outperform' on Apple (NASDAQ: AAPL) price target range of $460-$480.

Wells analyst says, "Apple reported FQ4 2011 results below consensus expectations but well ahead of management's always conservative guidance. Total revenue of $28.3B versus our estimate of $29.4B was lower primarily due to lighter-than-expected iPhone unit sales. Unit sales of iPhones came in at 17MM versus our forecast of 21MM units. Apple said that the frenzy around iPhone product rumors caused consumers to slow down purchasing during the latter months of the September quarter. The lower-than-expected revenue caused EPS to land at $7.05, well short of the $7.30 consensus figure. Management offered up fairly robust guidance for FQ1 2012 of $37 billion and EPS of at least $9.30. As we back into these numbers it seems to imply a strong rebound in iPhone units of at least 25 million. As a result of the shift in units from Q4 into Q1 we are raising our FY2012 revenue and EPS estimate to $139.3B/$34.50 from $136.7B/$33.40 previously."

For more ratings news on Apple click here and for the rating history of Apple click here.

Shares of Apple closed at $422.24 yesterday.

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