Deutsche Bank Slashes Numbers on Apple (AAPL) Post Q1; March Guidance Soft But Not a Surprise
Deutsche Bank slashed estimates and its price target on Apple (NASDAQ: AAPL) from $800 to $575 following Q1 results, but maintained a Buy rating.
Commenting on the guidance change, the analyst said: "AAPL revised the way it provides financial guidance & going forward will target a range it expects to reasonably achieve (previously it was a “point estimate that is conservative”). Taken at face value, Consensus estimates appear too high but in-line with our preview (midpoint of March Q guide suggest EPS of ~$9.75 vs. Street at $11.70). Although Apple does not guide on a product level, iPhone unit growth implicit in the guidance appears to be in the ‘single-digits’ and represents a sharp deceleration (vs. Dec Q at +29% Y/Y and +88% Y/Y in the prior March Q). Although below Consensus, most +investors we spoke with seemed to already expect a soft guide due to iPhone softness."
The firm cut CY13 rev/EPS to $187B/ $45.00 (vs. prior $205.5B/ $54.00) and introduce CY14 est’s of $203B/ $50.00.
Shares of Apple closed at $514.01 yesterday, with a 52 week range of $419.55-$705.07.
Commenting on the guidance change, the analyst said: "AAPL revised the way it provides financial guidance & going forward will target a range it expects to reasonably achieve (previously it was a “point estimate that is conservative”). Taken at face value, Consensus estimates appear too high but in-line with our preview (midpoint of March Q guide suggest EPS of ~$9.75 vs. Street at $11.70). Although Apple does not guide on a product level, iPhone unit growth implicit in the guidance appears to be in the ‘single-digits’ and represents a sharp deceleration (vs. Dec Q at +29% Y/Y and +88% Y/Y in the prior March Q). Although below Consensus, most +investors we spoke with seemed to already expect a soft guide due to iPhone softness."
The firm cut CY13 rev/EPS to $187B/ $45.00 (vs. prior $205.5B/ $54.00) and introduce CY14 est’s of $203B/ $50.00.
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Shares of Apple closed at $514.01 yesterday, with a 52 week range of $419.55-$705.07.