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Apple Sales Shortfall May Be Time to Buy Stock: Chart of the Day

Apple Sales Shortfall May Be Time to Buy Stock
Apple, the world’s largest company by market value, fell 4.3 percent to $574.97 at the close in New York yesterday. Photographer: David Paul Morris/Bloomberg

July 26 (Bloomberg) -- Anyone buying Apple Inc.’s stock after last quarter’s sales shortfall at the iPhone maker has history on their side, according to Gene Munster, a Piper Jaffray Cos. analyst.

The CHART OF THE DAY shows how Apple performed after four earlier cases of disappointing quarterly revenue, as tracked by Munster. They occurred in fiscal 2006, 2007, 2008 and 2011, with iPhone sales trailing estimates in the latter case.

Six months later, the shares were 23 percent higher on average.

“It’s going to be an in-vogue stock again shortly,” Munster said yesterday in a Bloomberg Radio interview. He cited the pending introduction of the next iPhone model, known as the iPhone 5, which he expects in October.

“We’re going to see a significant rebound in the December quarter, and that’s probably an understatement,” he said. The Minneapolis-based analyst rates Apple outperform, meaning he expects the stock to beat the median percentage change for companies he covers.

Apple’s revenue was $35 billion during the fiscal third quarter, which ended in June. Analysts expected $37.2 billion on average from the company, based in Cupertino, California, according to a Bloomberg survey. IPhone sales of 26 million trailed an average projection of 28.4 million.

Apple, the world’s largest company by market value, fell 4.3 percent to $574.97 at the close in New York yesterday. The shares have gained 42 percent this year.

To contact the reporter on this story: David Wilson in New York at dwilson@bloomberg.net

To contact the editor responsible for this story: Chris Nagi at chrisnagi@bloomberg.net

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