Apple stock flirts with $400 after company reports Q3 earnings
Apple reported an amazing third quarter with earnings of $7.79 per share well above estimates of $5.85. Revenue of $28.6 billion far surpassed the $25 billion expected by analysts. CEO Steve Jobs said, "We’re thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent. Right now, we’re very focused and excited about bringing iOS 5 and iCloud to our users this fall."
For the quarter, Apple sold 20.3 million units of the Apple iPhone 4 and 9.52 million iPad 2 units, which totally smoked estimates. For example, we recently reported that Brian White of Ticonderoga Securities was looking for 17.53 million in Apple iPhone 4 sales and 8.5 million Apple iPad 2 sales.
Apple now has $76.8 billion in cash, up $10 billion in the last 90 days, which could actually hold down the stock because such a mountain of cash can burn a hole in an executive's pocket until they use it to make an ill-thought out acquisition.
After hours, Apple's stock soared $21.99 or 5.84% to $398.84, a new 52 week high.
source: DowJones via Yahoo
Apple now has $76.8 billion in cash, up $10 billion in the last 90 days, which could actually hold down the stock because such a mountain of cash can burn a hole in an executive's pocket until they use it to make an ill-thought out acquisition.
Apple estimated fourth quarter earnings of $5.50 a share, below analyst's estimates of $6.42. The Cupertino based firm predicts $25 billion in sales for Q4, lower than the $27.7 billion that Wall Street expects. It should be noted that Apple has a reputation of "lowering the bar" to make it easier for the company to beat earnings estimates.
After hours, Apple's stock soared $21.99 or 5.84% to $398.84, a new 52 week high.
source: DowJones via Yahoo
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