Tuesday, April 24, 2012

Holy Mackeral! Expected $10; Actual $12 -- A Blow-Out


April 25, 2012: AAPL is up an astounding $51 in pre-market trading.

Original Post

Disclaimer: this post was typed on the fly while listening to CNBC and flipping back and forth to financial websites. There may be errors, especially with the numbers.

Disclaimer: I've never owned shares in AAPL and don't own any shares in AAPL now and won't be buying any shares in AAPL. Apple, Inc., is simply my favorite company.


Beats expectations by $2.26 and most talking heads all day thought AAPL would miss. The CNBC analyst following AAPL appears absolutely stunned. He says he's looking for something to "calm" this down, but can't find anything. Can't explain why ATT and Verizon did not foreshadow these numbers. Obviously it's all about overseas growth this most recent quarter. [This is the big story of the day: the CNBC analyst completely missed the China story; they were focused on ATT and Verizon iPhones and felt that AAPL was going to miss on number of iPhones sold. This is a CHINA story. And this affects more than just AAPL. Think energy.]

35 million iPhones.
12 million iPads.
7 million iPods (stronger than expected)
4 million iMac desktops/laptops -- a little light [for newbies: AAPL has announced a new operating system later this summer; rumors of refresh in hardware this summer; the big quarter for iMacs is the quarter before school starts and the first full quarter of fall semester]

Everybody is too focused on the cash horde; tiring. Cash at end of 2Q12: $110 billion.

AAPL CFO: Highest March quarter ever for earnings, revenue. They can't make the iPhones fast enough; they sell them as fast as they make them. iPads flying off the shelves overseas.

One analyst: "Huge."
Another analyst: "A very good number."
Maria: "A blowout."
Maria: "Another blowout." She's about to have a stroke.
Maria: "posting another very strong quarter."

2Q12 revenues: $39.2 billion; forecast $36.8 billion

Ten seconds after the announcement and Maria the talking ahead is asking how can they keep going? What can they do next? A bit tiresome. "They've" been asking that from AAPL from the very beginning.

Up $25 after hours immediately following the announcement. Now, at 4:50 p.m. EDT, it's  up $41.22/share.

Wow, I'm glad I'm not short AAPL.

All the above typed, and posted, and the link to the "Business Insider " has not yet posted any AAPL earnings. At 4:46 no update from this "live" site. My initial post was date/time-stamped (note the time-stamp is Central Daylight Time, one hour earlier than Eastern Daylight Time).

Remember all those concerns about the passing of Steve?

Wow, now the Fast Money folks are eating crow. Wow.


  1. you are right; this is a China story. We have been in Hong Kong all month. The Apple store in the IFC store in Central has been packed every day the entire month.

    1. Great comment; thank you for taking time to send a comment. Pretty exciting.