Updating our Apple financials forecast....
As part of the MacWorld keynote, Steve Jobs is currently updating sales figures for its fiscal 2006 Q1 (that's the Christmas holiday quarter, since Apple's fiscal year starts on October 1). The big story: the company sold 14 million iPods (our projection was 8 million. Boy are we pikers.) and made $5.7 billion in revenue in that quarter. It wasn't that long ago that Apple was happy with $5.7 billion for the year.
But I've done a quick update of our earnings projection for Apple as the result of those figures. My estimate is that selling 14 million iPods brought in about $2.7 billion in revenue from iPods alone. My prediction: you should see about $.66 a share earnings for the quarter, and if the year measures up to the quarter the way it did in 2005, we would see $2.67 in earnings for the year. Assuming a P/E of 35, that would yield a stock price of about $93. If you go with a P/E of 50 (about what Apple is selling at now), you get a target price of $134. As of this posting, apple is up more than 3.5 points on the news -- clearly others are running the numbers as I am.
More analysis when I have more data to work from. Official earnings should be out later in the month.
But I've done a quick update of our earnings projection for Apple as the result of those figures. My estimate is that selling 14 million iPods brought in about $2.7 billion in revenue from iPods alone. My prediction: you should see about $.66 a share earnings for the quarter, and if the year measures up to the quarter the way it did in 2005, we would see $2.67 in earnings for the year. Assuming a P/E of 35, that would yield a stock price of about $93. If you go with a P/E of 50 (about what Apple is selling at now), you get a target price of $134. As of this posting, apple is up more than 3.5 points on the news -- clearly others are running the numbers as I am.
More analysis when I have more data to work from. Official earnings should be out later in the month.
Technorati Tags: Analysis, Apple, Business, Financial analysis, iPod, Marketing, Video iPod
posted by Carl Howe at
12:37 PM
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