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Apple’s Earnings – Will Jobs Surprise the Street

Next week is one of the busiest this earnings season, and Apple Inc (NASDAQ:AAPL) is slated to report its quarterly results this coming Monday, January 25th after the market closes.

With current market weakness, Apple’s results can help the bullish sentiment if they provide a convincing beat to Wall Street expectations. Although, the tape has been sell after earnings, as it was evidenced with Intel (NASDAQ:INTC) and IBM (NYSE:IBM) results that rollover after beating the street’s expectation.

What can be viewed as a difference in Apple’s situation is that a beat of expectations can probably generate a jump in the stock, as the stock has not had its usual pre-earnings run up. In addition, still momentum can get into the stock given next week’s Apple Tablet PC presentation, which is expected to offer functionality from the IPhone and work as an e-book reader as well.

Wall Street estimates already call for a robust 20% growth in revenue, which will be tough to beat.  Consensus calls for a profit of $2.07 per share on $12.05 billion revenue, with the low estimate calling for a profit of $1.71 per share on $$11.21 billion revenue. The high range of the estimates is calling for a profit of $2.27 per share on $12.60 billion revenue.

Monday’s intraday action might give traders some clues of what the market will do, after it digests Apple’s earnings on Tuesday.

 

FlowStock Seeker

  
As of Market Close:
August 27th, 2010

DOW - Avoid

F - Avoid

T - Not Compelling


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