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S&P Capital IQ analyst Scott Kessler weighs in on Apple's earnings miss and why it creates a hot buying opportunity for investors.
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-- thanks so much.
So apple slice the iPhone maker's latest quarterly report missing Wall Street's estimates that it's only the second time that has happened in twenty quarter as.
But with iPhone 5 expected this -- is now good.
Opportunity let's -- Scott Kessler analyst at S&P capital IQ Scott this is a debate we've been having around here.
All morning long where do you -- -- you think this is an opportunity.
We do I mean -- we don't like to follow masses but to be frank with you the reason the stock is only down 4%.
Is because number one we think a lot of folks.
Were wondering about the possibility of a mystery in the June quarter for the September quarter.
And edition of such pent up demand for the iPhone 5 if you look at the stock for what it is right now.
It's trading at a market multiple and the growth rate notwithstanding the recent results is considerably higher.
You know Scott and makes a lot a lot of logical sense the probably is as they have these product change -- so many times in the past.
And in those situations they have -- missed quarterly earnings except for that one time they're generally fantastic.
I -- and bagging analysts and investors in start at under promising and over delivering so does feel like something fundamental has changed your note.
Well I feel like what happens with apple is they generally provide very conservative guidance -- and often the investing public simply disregards that and in this case.
Folks including myself or perhaps overly optimistic.
Not only on the iPhone but some of the other product lines keep in mind that they just announced refreshes.
-- new computers at the -- -- developers conference last month so.
I get what people are saying but think back to the September quarter from last year.
When they reported some disappointing results around the -- phone because guess what.
The iPhone four S had just come out so.
I feel like we've -- seen this movie before and now with the stock yielding close to 2%.
We think it's even in even more compelling buying opportunities do you think Tim Cook can provide the same magic.
You know Tim Cook provides a different kind of magic right and Steve Jobs did I mean.
Tim Cook and no one else is gonna provide the genius in terms of innovation and and -- sense and intuitive -- that Steve Jobs to provide but.
Tim Cook has brought.
They focus on operations.
As well as shareholder orientation that didn't seem to occur as much under the prior regime I mean think about they have a dividend in place there's.
And I think they're gonna be a lot war -- shareholder oriented going forward.
Than the prior leadership was real quick what's your price target what kind of upside if -- left.
So we see a lot of upside still for apple we cut our target this morning from 825 dollars.
800 dollars so we still see some -- is the next upside for apple and again note the dividend yield which is there -- -- increase over time we think.
That's that's a good point -- but that would be big move there all right Scott Kessler thank.
