Apple’s ‘Tremendous Job’ Lifts Stock-Price Bar: Chart of the Day
Apple Inc. (AAPL)’s record earnings and sales last quarter touched off the biggest one-day increase in share-price estimates for the maker of iPhones and iPad tablets in more than two years.
Analysts raised their projections yesterday by an average of 8.5 percent, according to data compiled by Bloomberg. That figure exceeded Apple’s 6.2 percent advance after the company, based in Cupertino, California, said profit more than doubled and revenue jumped 73 percent in the fiscal first quarter.
The CHART OF THE DAY shows how the estimated price, based primarily on analysts’ outlook for the next 12 months, compares with the stock’s market price. Yesterday’s average of $569.19 was 27 percent higher than the close. Since 2007, the gap has averaged 26 percent, according to data compiled by Bloomberg.
Yesterday’s biggest increase came from Tavis McCourt, an analyst at Morgan Keegan & Co. in Nashville, Tennessee, based on Bloomberg’s data. McCourt lifted his estimate for Apple’s price by 27 percent to $650 a share.
“They’re doing a tremendous job, obviously,” McCourt said yesterday in a telephone interview. The higher projection is 15 times his fiscal-year profit estimate of $43.31 a share, which he raised from $34.20.
Apple earned $13.87 a share in the first quarter on sales of $46.3 billion. The increase in estimates after those results was the biggest since Oct. 20, 2009, when analysts raised their projections by 9.2 percent in the aftermath of a fourth-quarter earnings report.
To contact the reporter on this story: David Wilson in New York at dwilson@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
Jan. 25 (Bloomberg) -- Lawrence Haverty, portfolio manager at Gamco Investors Inc., talks about Apple Inc.'s first-quarter profit. Apple's profit more than doubled on surging demand for the iPhone and iPad. Haverty speaks with Betty Liu and Cris Valerio on Bloomberg Television's "In the Loop." (Source: Bloomberg)
Jan. 25 (Bloomberg) -- Gene Munster, an analyst at Piper Jaffray Cos., talks about Apple Inc.'s fiscal first-quarter profit. Apple reported that profit more than doubled on surging demand for the iPhone and iPad. Munster speaks with Scarlet Fu on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
Jan. 25 (Bloomberg) -- Kenneth Schapiro, president of Condor Capital Management, talks about the outlook for Apple Inc. Apple reported quarterly profit that more than doubled as holiday purchases of the iPhone catapulted sales to a record and helped the company steer clear of the consumer-spending slump that has hurt rival companies. Schapiro speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Jan. 24 (Bloomberg) -- Gene Munster, an analyst at Piper Jaffray Cos., talks about Apple Inc.'s fiscal first-quarter profit and Yahoo! Inc.'s fourth-quarter revenue and outlook under newly appointed Chief Executive Officer Scott Thompson. Munster speaks with Emily Chang on Bloomberg Television's "Bloomberg West." Jon Erlichman also speaks. (Source: Bloomberg)
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