In the wake of the earnings report, Pacific Crest analysts say Apple’s AAPL, -0.63% “dominant smartphone position” and its “attractive valuation” have prompted them to raise their rating for the stock to overweight from sector weight. Analysts expected EPS of $1.88.
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Apple sold 48 million iPhones in the fourth quarter which was in line with consensus estimates.
The company said it did see a slowdown in China during the quarter.
Read the full report on Apple’s quarterly performance by TheStreet’s Technology Editor Chris Ciaccia. Shares rose about 3 percent percent in extended trading following the results. PayPal closed at $36.52, up 1.6%, during the regular trading session.
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However, deeper statistical analysis shows that in the past two years, 30 days after Apple reported earnings, shares were higher 75% of the time. The Austin, Texas-based company supplies chips to the Apple iPhone. Earnings are expected to be reported Tuesday after market close, and even though my proprietary earnings algorithm is forecasting a beat for the tech giant, the stock has a reputation for being unpredictable following its reports. All AAPL has to do is remain above $107 – which is 7.4% below the recent price – through November 20, and we will make a profit. Earnings, adjusted for one-time gains and costs, came to 65 cents per share, the Associated Press reported. Both fell short of Wall Street’s expectations, according to StreetAccount. This is the consensus mean number based on the analysts polled by Zack’s Research. The chipmaker posted revenue of $306.8 million in the period, also beating Street forecasts. There are 24 analysts in total total that contribute to the Zacks consensus target.
