Apple beats even our projection on earnings
As I noted earlier, Apple's business performance was bound to exceed Wall Street expectations. But more impressively, it exceeded even mine. I had predicted Apple would earn $0.48 per diluted share on $4.4 billion in revenue. The company actually earned $0.54 per diluted share on $4.37 billion in revenue.
Where did I go underestimate Apple's performance? I hadn't expected Apple to dramatically improve its gross margins to more than 30%, given that it already boasts some of the highest gross margins in the computer business. Also, the company sold even more computers than I'd modeled.
All that said, I'm still expecting Apple to earn about $2.19 for its fiscal year. That feels pretty solid since Fiscal 2006 doesn't include the Christmas selling season. And I expect Apple to have a very merry Christmas indeed.
Where did I go underestimate Apple's performance? I hadn't expected Apple to dramatically improve its gross margins to more than 30%, given that it already boasts some of the highest gross margins in the computer business. Also, the company sold even more computers than I'd modeled.
All that said, I'm still expecting Apple to earn about $2.19 for its fiscal year. That feels pretty solid since Fiscal 2006 doesn't include the Christmas selling season. And I expect Apple to have a very merry Christmas indeed.
Technorati Tags: Analysis, Apple, Finance, Financial analysis, Marketing, Stocks
