Apple (AAPL) Gets Last Minute Q4 Estimates Hike

October 28, 2013 12:01 PM EDT
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Cantor Fitzgerald analyst Brian White is not happy with his Q4 estimates on Apple (NASDAQ: AAPL) into tonight's print. As a result, the analyst raised his revenue estimate to $37.49 billion from $34.57 billion and is increasing his EPS projection to $8.06 from $7.23.

Apple will report fourth quarter results tonight around 4:30PM ET with a conference call at 5:00 PM ET. On average, analysts are looking for revenues of $36.84 billion on EPS of $7.93.

"After a year to forget in FY:13 with our forecast for EPS to fall for the first time since FY:03, we expect EPS growth to return in FY:14 for a year that we believe will prove to be one of innovation," White comments. "Already, we believe the iPhone 5S is off to a strong start, and we were inspired by the recently unveiled iPad Air that we view as a game changer in the tablet market with availability beginning this Friday. Trading at just 8.3x our CY:14 (ex-cash) EPS estimate, our expectation is for EPS growth to return in FY:14, and with Carl Icahn getting louder about the need for increased cash distribution, we believe Apple has upside to our $777 price target."

White also raised his iPhone unit forecast to 32.96 million from 31.8 million and is increasing iPad unit forecast to 14 million from 13 million. He is also adjusting his iPhone average selling price assumptions to reflect a more favorable pricing strategy around the iPhone 5C, while increasing iPad mini ASP assumptions starting in 1Q:FY14 to reflect the higher priced iPad mini with Retina Display. Furthermore, he is reducing Mac unit assumptions for 4Q:FY13 to 3.8 million from 4.0 million to reflect a weak PC market.

For 1Q:FY14, he is raising revenue projection to $58.94 billion from $56.5 billion and increasing EPS estimate to $14.50 from $14.24. As such he is raising FY:14 EPS estimate to $45.00 from $43.97 and increasing FY:15 EPS projection to $52.10 from $51.19.

White maintained a Buy rating and $777 price target on Apple.

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 $525.96 yesterday.


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