AAPL: Why Apple Will Miss Earnings And Trade Below $600

Why Apple Will Miss Earnings And Trade Below $600
by Qineqt

Apple (AAPL) launched a series of new products yesterday, Oct. 23, just ahead of its Thursday earnings release. For Q3, the market is expecting sales of $36.02 and EPS of $8.82. We believe the company will report sales of $33.1 billion and EPS of $8.13. That's because we believe the company has sold 21.5 million iPhones (26% year over year) in this quarter, as compared to the Street's estimates of 27 million. The sales and margins of the iPad Mini can have a significant impact on the price as it contributes approximately $7.5 to annual EPS estimates. We believe the company will miss earnings estimates, taking the stock price below $600. Therefore, we are offering a sell recommendation on Apple. read more »

More on AAPL:

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