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What to Expect from Apple Earnings

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  • Description

    Daniel Ernst of Principal Hudson Square Research gives his outlook for Apple.

  • Duration 4:14
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So much so while investors are concerned about this quarter's low iPad sales and stock's recent slump while our next guest.

Just about a month or so -- increased its price target by 200 dollars Daniel Ernst.

Analysts for Hudson square research.

Joins us now it's so nice to have you -- have me our rates I think in a way apple has spoiled that shareholders by knocking it out of the park.

He hit on it at a mention the two quarters where they missed expectations but those expectations were were so high -- they raise the bar so high so what are you expecting tonight after the -- Yeah -- I think that's the thing about apple is that there's so much focus on the short term.

You know what's the color of the latest iPad to our iPod right -- what you know how to it was a house hobbies is being unity.

-- in his cell 26 million phones its core 25 did to carriers right down or or worked on inventory throughout the quarter in.

-- waiting for the iPhone 5 BO or where they try to you know keep it going you know the whole quarter but I think all of that is noise around the consistent.

Track record of apple over the last decade so over the last five years they've grown revenues six -- Six times higher revenue earnings eleven times I have.

In the year they're about to close of the report they're -- fiscal fourth quarter.

Revenue should be up around 35% and -- around 58%.

Rates don't mean you know the exact magna you know the for the quarter from me doesn't really matter and it as much the stock is bigger earnings 58% this is not.

Some tiny little company right -- to do.

A 140 billion dollars in in 1990 million dollars in sales this year and the growing you know 20% top line and they treated.

Fourteen times earnings twelve times next year's and they have a dividend they have -- that I as stated is really comedic -- Long term rate did they actually have to invent a new thing that we all need in order to stay as on fire as they are and do you think they have that the pipeline -- -- music apple TV -- -- -- have to come up I -- it.

Invented the iPod they invented the I thought I guess we -- phones before but the iPad is something they certainly revolutionize.

They need to create a new category in order to maintain their apple staff.

So I mean I think most -- will tell you yes I think what they've put in the pipeline today within the current products I think the answer is no.

Five years ago or six years ago they -- we only sold.

Computers right and then -- expanding created because the other might have won the -- community -- the number one music sour in the world when they -- to put out the iPod.

And so they've grown their I -- -- market within the things in a different category -- crush -- -- and continue to note to a couple hundred billion.

Fares are Reno virtually and -- opportunity.

In what they're selling today.

Itself yeah -- saying that while he know it was his revolutionary this product they always have the -- when Wednesday was still with us they would always say.

That wasn't all that amazing in the new numbers come out -- are absolute blown away by by how much they're selling and so did.

When they wants the -- many the other day.

-- -- took notes down over everything they were talking about it occurred to me.

The eight.

Re launch.

Every single product that they south they -- launched you know -- again all the iPods eight we launched the iPad twice this year.

-- -- the difference now with the iPad is you've got a lot of competition that tablet space right now with the Kindle fire and you know it seems like you know apple is.

It doesn't it's not that dominate or perhaps at -- or maybe that's nominee shall threatening to that the better way to keep in -- -- of the -- still only have 6%.

The PC market.

Great in the so -- always -- another revenue is from two products.

Because each candidate right in the and so this is the good thing that they've greatly expands the just a market that that that they serve but.

That -- I don't think there's any company.

Out there -- -- their entire park one I don't think Apple's ever done that.

-- operating system the you know the -- to all the all the obvious all the tabloids and all all the notebooks everything was was -- -- this you know things are done that before so.

I really I looked -- -- -- that was -- -- -- just real large company it seems mathematically hard.

For him to keep doing this -- you're the last twelve years earnings growth has accelerated not -- it's just a fascinating story thank you so much for sharing an office that's getting -- great.

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