Apple (AAPL) iPhone, iPad Sales Expected to Be Strong, Macs a Little Light - Sterne Agee
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Price: $165.00 -1.22%
Rating Summary:
39 Buy, 25 Hold, 7 Sell
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
39 Buy, 25 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Sterne Agee's Shaw Wu is out defending Apple (NASDAQ: AAPL) following yesterday's weakness related to concerns over slowing iPhone sales and same worries about iPad.
"Based on our supply chain checks, we anticipate a sizeable EPS beat based on iPhone and iPad strength despite Macs likely coming in a little light," he said. "We believe concerns over slowing iPhone and iPad momentum are overdone and are buyers on recent share weakness."
Specifically on the Verizon concerns, Wu said they are overdone. He notes that Verizon is just one of an estimated 150 iPhone carriers.
Despite bullishness on iPhone and iPad, Wu belive Macs will come in a little light. "We are picking up this due to: (1) there appears to be a drawdown in inventory on some models indicating there could be a pending product refresh and (2) some minor cannibalization from the iPad," he said.
While he believes Apple's Q2 results will be strong, he thinks guidance could be less conservative than usual.
For the upcoming March quarter (due 4/24), Wu sees 29.5 million iPhone units, 4.3 million Macs and 12.3 million iPads. He sees EPS of $10.20 on revenues of $36.8 (up from $10 and $36.4).
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 $587.44 yesterday.
"Based on our supply chain checks, we anticipate a sizeable EPS beat based on iPhone and iPad strength despite Macs likely coming in a little light," he said. "We believe concerns over slowing iPhone and iPad momentum are overdone and are buyers on recent share weakness."
Specifically on the Verizon concerns, Wu said they are overdone. He notes that Verizon is just one of an estimated 150 iPhone carriers.
Despite bullishness on iPhone and iPad, Wu belive Macs will come in a little light. "We are picking up this due to: (1) there appears to be a drawdown in inventory on some models indicating there could be a pending product refresh and (2) some minor cannibalization from the iPad," he said.
While he believes Apple's Q2 results will be strong, he thinks guidance could be less conservative than usual.
For the upcoming March quarter (due 4/24), Wu sees 29.5 million iPhone units, 4.3 million Macs and 12.3 million iPads. He sees EPS of $10.20 on revenues of $36.8 (up from $10 and $36.4).
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 $587.44 yesterday.
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