 |
|
 |
 |
Apple is known for dramatically lowballing its profit guidance, and then miraculously blowing out “expectations.”
Since Sept. 2006, Apple has topped its quarterly EPS guidance by an average 39%, and its revenue guidance by an average 7%.
So what does that mean for this quarter, which will be reported Tuesday afternoon? (Join us for LIVE coverage.)
It’s hard to tell, because Apple significantly changed its accounting practices last quarter. It now recognizes iPhone revenue almost all at once, instead of spreading it over 24 months. So we won’t know for a few quarters just how much Apple is lowballing its guidance using the new numbers.
But running the old formula, based on Apple’s midpoint March quarter guidance of $2.12 EPS and $11.20 billion in sales, history suggests Apple should report EPS of about $2.95 on $11.98 billion of revenue.
Wall Street expects lower earnings but even higher revenue: Consensus stands at $2.44 of EPS on $12.06 billion of revenue. So Apple is set up to once again “surprise” on earnings, but, possibly, disappoint on revenue.
Follow the Chart Of The Day on Twitter: www.twitter.com/chartoftheday
Join the conversation about this story »
See Also:
- CHART OF THE DAY: Here’s Why The Mobile Ad Market Is Still Small
- CHART OF THE DAY: How Will The iPad Sell Compared To Other Mobile Gadgets?
- CHART OF THE DAY: Email’s Reign Is Over, Social Networking Is The New King