AmTech: Dec. quarter to show strong numbers
updated 11:00 am EST, Tue January 22, 2008
AmTech: Strong Dec. profit
Due to be released later today, Apple's December quarter results should be extremely strong, says analyst Shaw Wu of American Technology Research. While Apple is conservatively predicting $9.2 billion in revenue with an earnings per share (EPS) of $1.42, AmTech is predicting much better figures at $9.4 billion and $1.63. Wu notes that consensus views are even more optimistic, rated at $9.47 billion and $1.62.
The AmTech prediction is based partly on estimated sales, which match those of Piper Jaffray in terms of the 2.3 million Macs, but exceed them by forecasting 25 million iPods. Two million iPhones are expected to have shipped as well. More importantly, according to Wu, Apple's gross margin should be higher this year, at 33 percent instead of the prior year's 31.2. Apple is continuing to guide to a 31 percent margin.
Looking ahead to the March quarter, AmTech is once again aiming below consensus at revenue of $6.9 billion and a $1.10 EPS, versus $7 billion and $1.09. Apple may nevertheless be doing better than its competitors, at it has only dropped 7 percent on the NASDAQ during the last quarter, while the rest of the exchange fell 15 percent.
