Apple Beats, Guides Lower

Tyler Durden's picture

And here they are:

  • APPLE 2Q REV. $39.19B, EST. $36.87B
  • APPLE 2Q EPS $12.30, EST. $10.02
  • APPLE 2Q IPOD UNITS SOLD 7.7MLN , DOWN 15%            
  • APPLE 2Q IPAD UNITS SOLD 11.8MLN                      
  • APPLE 2Q GROSS MARGIN 47.4%, EST. 42.8%              
  • APPLE 2Q MACINTOSH UNITS SOLD 4MLN , UP 7%            


  • APPLE SEES 3Q REV. ABOUT $34B, EST. $37.49B
  • APPLE SEES 3Q EPS ABOUT $8.68, EST. $9.96       

Is this just the usual lowballing, or is it for real this time? Recall that Tim Cook's first earnings release the company guided above consensus. Is Cook becoming Jobs, or is this a guide down for real?

Also the reason for the beat: ASIA. Not the surge in sequential growth in the traditionally weaker Q2 (ended March 31) quarter all courtesy of Asia:

Stock right now is +$25 in the after hours session.

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ZeroPower's picture

Options were implying ~$40 move for tomorrow's open, so looks like $600 is in the cards, again.


Foxconn.......coming to Amerika. 

slewie the-pi-rat's picture

rejoice slaves, an extra portion of rice for all

Colombian Gringo's picture

Apple still sucks, just kidding <g>

Sounds like they shifted profits and sales from the next quarter into the present quarter. Wouldn't want to screw up the Facebook POS IPO.


spastic_colon's picture

We all just got gamed by Verizon, CNBS, foxxconn and the bankers and AAPL

Waterfallsparkles's picture

Negative all day.  Forcing longs to sell.  It was a sham.

Whatta's picture

forced me to go long a ATM call spread just before close.

CHA-CHING, a two-bagger+ at opening bell tomorrow. sweet.

derek_vineyard's picture

guy from phoenix capital predicting doom for sure, this time not crying wolf, in may/june might have to find another profession

NotApplicable's picture

Ok, now we've got the doube-hypenated fake to go along with the no-hypenated fake.

Pathetic squared!

ACP's picture

Kinda reminds me of the Nasdaq rebound in 2000, before it tanked for good.

CPL's picture

Look who's buying it and volume.  No thank you.

ZeroPower's picture

No way to know, though i'd love to hear your clearly bearish thesis on why its a flop based on who is buying it in the a/h session.

SAT 800's picture

Canadian Womens! I like you. I'll try to help you. Short it. Short it right now. It's a classic, classic, example of public fever; aka tulipmania. Okay? Good.

SAT 800's picture

Short it now; Canadian Womens. Dont' wait for anything. Do it now!

Clueless Economist's picture


Cramer was right !

Rubbish's picture

I have never owned an apple product, but I do own 2 mosin nagants !

cossack55's picture

Used to own a number or AKs till they fell out of the boat.

taniquetil's picture

7.64x54r is cheap cheap cheap!

Clueless Economist's picture

500 ROUND bricks @ Cabelas way to go...they even throw the case in for free

JeremyWS's picture

EU is the most interesting reaction.

PicassoInActions's picture

damn, some1 is making money...

slaughterer's picture

As one of the few AAPL bulls here at ZH, I can now change my adult diapers: Tyler, you had me scared for the last two days.   

I am a Man I am Forty's picture

I was not because their analysis has been wrong FOREVER, they have ZERO credibility when it comes to Apple.  ZERO!!!!

homersimpson's picture

I guess if zero credibility = ZH reports Apple sandbags their earnings consistently, then yes.. they have "zero credibility."

Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

Sometimes the analysis gets mixed with the religious fervour. 


TD#1 does have a personal downward bias after all.

HarryM's picture

Will be 650 by Friday 

HarryM's picture

The game of chicken , continues

SheepDog-One's picture

Not for me, I just laugh at this bullshit. 

williambanzai7's picture

I sent one email to a well known ZH member.

It had nothing to do with the MSM and Wall Street and lots to do with Jesse Livermore.

It said BTFD

maxmad's picture

here comes the selloff!

maxmad's picture

592 is the high of this move.... SELL

CClarity's picture

596 and don't sell.  Ride it up to 700.

maxmad's picture

6 months it will be half off!

maxmad's picture

OK 598... This is it now... the high is in...

CClarity's picture

Now 602.  Actually, I'd recommend backing out by $650 unless Europe or other general scary market stuff rears its head again (and of course it will) because at the end of the day, Apple is used as market proxy for fast selling, margin calls, liquidity trades, and every "professional" money manager feels compelled to own some or have to explain why not.  

It is a well run company with amazing products.  Huge cash balances and discipline.  It is a quality stock.  But it no longer trades just on that.  Its huge market cap makes it something of a commodity.  Have to pay attention to that too.

blu's picture

Lots of heat still at 603. But yeah I think that might be it.

JNPR exploded before the bell. People are willing to buy.

Al Huxley's picture

Are you by any chance short AAPL?

disabledvet's picture

short? on this site? NOOOOOOOOOO. Why would you ever think that?

Cognitive Dissonance's picture

Take what (news) you want and leave the rest. At least that's how the HFT algos see the world.

MeanReversion's picture

Apple is notorious for lowballing so they end up smashing their own estimates.  This is a lowball although I do not expect next quarter to be as strong with no major product launch other than a new mac.

ZeroPower's picture

New iphone typically comes out in the summer...

MeanReversion's picture

Normally true, but Qualcomm's supply problems suggest may have issues with a summer release.  It's been suggested that there may be a October release, which would give Apple a massive ramp up for Q4(Apple Q1) earnings.  The wildcard are the impact of new windows tablets and whether carriers start to back a windows phone alternative to exercising subsidy pricing leverage on Apple (I'm skeptical).  Windows tablets I do think have potential, but not enough to put a massive dent in Apple's bottom line.

The other obvious wild card is the macro environment.  Global slowdown is looming which is the most likely road bump for Apple rather than any competitor's products. 

SAT 800's picture

I'm so sorry to see you've been hypnotized. Consider RIMM. Consider it well. These are ephemera. APPL's day in the sun is done. It's over.