Posts Tagged ‘guidance’

Apple Mac Sales Soar, iPhone Misses

Apple Mac Sales Soar, iPhone Misses

Courtesy of Dan Frommer at Clusterstock

steve jobs - tbiApple threw us a curveball today: The company reported results in GAAP format, reflecting an accounting change that means they no longer have to distribute iPhone revenue and earnings over 24 months.

Unfortunately, that means Apple’s GAAP results don’t match up with non-GAAP estimates. So analysts are going to have to tweak their models.

As expected, the Mac had a monster quarter. Apple reported 3.36 million Mac shipments, higher than the Street expected. But the iPhone was relatively weak: Apple only shipped 8.7 million iPhones, lower than the 9.1 million Street consensus.

Steve Jobs also touted the Apple tablet in the earnings release: "The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about."

Shares resumed trading at 4:55 and were immediately down about 1%. But now it seems to be creeping upwards.

Join us for LIVE coverage of the company’s conference call, beginning at 5:00 p.m. ET. Click here for the latest.

Key stats:

  • GAAP Revenue: $15.7 billion
  • GAAP EPS: $3.67
  • Macs: 3.4 million vs. 3.0 million consensus
  • iPhones: 8.7 million vs. 9.1 million consensus
  • iPod: 21 million vs. 21.0 million consensus
  • Gross margin: 40.9%
  • Guidance (Rev.): $11.0 billion to $11.4 billion
  • Guidance (EPS): $2.06 to $2.18

LIVE Conference call coverage: (refresh for the latest)

4:52 Waiting for call to begin..

5:04 Call begins. Opening remarks from IR boss.

5:04 COO Tim Cook, CFO Oppenheimer on the call. No Steve Jobs. (Jobs not expected.)

5:05 Oppenheimer: We’re thrilled to report our best quarter ever! New records for Macs and iPhones. All historical comps busted because of new accounting rules. Peter will explain in detail coming up. Now going over results from release.

5:07 Record Mac sales of 3.36 million, beating by over 300,000. Up 33% year-over-year. Compares extremely favorable to ICD’s 17% year-over-year growth for the market. iMac especially huge.

5:08 New records for K-12 and High ed for Dec. quarter.

5:08 Traditional iPods declined, but 55% y/y increase in iPod touch, sending up ASP and revenue.

5:09 Strong sales of music, video, and apps drove up iTunes sales. Features over 8,000 films,…
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Microsoft Guidance Change Leads To MASSIVE Confusion

CNBC Blows Microsoft Guidance Cut, Creaming Stock (MSFT)

steve ballmer - tbiCourtesy of Jay Yarow and Joe Weisenthal at Clusterstock

Update: At about 10:50 ET this morning, CNBC  and WSJ’s Digits Blog reported that Microsoft had lowered guidance on its conference call.  The stock immediately tanked.

What Microsoft actually lowered was OPERATING EXPENSE guidance.  In other words, the company said it would spend less than it previously thought.  This is good news, not bad, so all else being equal, it’s good for the stock.

About 10 minutes after reporting a guidance cut, CNBC came back and said the lowered guidance referred to costs.

Previously,

Microsoft Guidance Change Leads To MASSIVE Confusion (MSFT)

Update: We’re still trying to figure out what’s going on here, but both CNBC and and WSJ’s Digits Blog reported that at 10:50 Microsoft lowered revenue guidance.

Then about 10 minutes later CNBC came back and said the lowered guidance referred to costs. Either way, the confusion here is massive and significant, but we’re not clear whether the error was on Microsoft’s side or on the media’s side.

(A user error on our part led to us accidentally quitting the call 20 minutes in.)

——-

On its earnings call, Microsoft (MSFT) lowered its guidance for cost in the next quarter to $26.2 to $26.5 billion from $26.7-$26.9 billion.

Other notes:

  • Headcount reduction of 4% was biggest in company’s history.
  • Online ads were down 3%
  • Xbox revenue up 50%
  • Microsoft says it will get not revenue contribution from the Yahoo deal this fiscal year.
  • As a matter of fact it expects $200 million in costs from the deal.
  • Excited about Windows 7
  • Cashback program on search not much of an impact in the quarter

Microsoft’s stock is pulling back from its highs. Though, the market at large is falling.

See Also:

Market Gets No Help From Microsoft And Amazon (MSFT, AMZN)

Microsoft Crushes Estimates, Stock Takes Off (MSFT)

Well, What Do You Know: Google Is Actually Nervous About Microsoft Bing (GOOG, MSFT)

Comment:

Henry Blodget

Henry Blodget

It sounds like everyone is confusing "REVENUE" guidance with "OPERATING EXPENSE" guidance.

A cut in the former is bad. A cut in the latter is good.

 


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Phil's Favorites

This Time It's Different: Maybe? ...John Street Capital Joins Me On Panic With Friends

 

This Time It’s Different: Maybe? …John Street Capital Joins Me On Panic With Friends

Courtesy of Howard Lindzon

(Originally posted on July 10, 2020)

This made me laugh yesterday…

In the shoulda, coulda, woulda department today…a $500,000 investment in the Amazon IPO would be worth $1 billion today if you held it.

Onwards&helli...



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Biotech/COVID-19

How deadly is COVID-19? A biostatistician explores the question

 

How deadly is COVID-19? A biostatistician explores the question

The number of confirmed and probable deaths from COVID-19 in New York City was 23,247 as of July 10, which is more than eight times the number who died in the 9/11 attack. Angela Weiss / AFP via Getty Images

Courtesy of Ron Fricker, Virginia Tech

The latest statistics, as of July 10, show COVID-19-related deaths in U.S. are just under 1,000 per day nationally, which is down from a peak averag...



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Zero Hedge

Before You Buy Tonight's Dip, Here's One Chart To Consider

Courtesy of ZeroHedge

Today's Nasdaq price action was likely a bit of a shocker for many freshly-minted day-trading gurus.

After accelerating after the cash trading open to gains of more than 2% from Friday's close, a combination of the S&P 500 tagging unchanged on the year, Dallas Fed's Kaplan spoiling the party with comments that suggested the Fed punchbowl may not be there forever, and various COVID headlines (including major rollbacks in California) sent the Nasdaq tumbling to down 2% on the day...

This was only the 26th time that has happened to the Nasdaq (closing down 2% after trading up 2% on the day)...

...



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Digital Currencies

Chainlink Crypto Surges To A New All-Time High - Here's Why...

Courtesy of ZeroHedge View original post here.

Authored by Joseph Young via CoinTelegraph.com,

Surging volume, price discovery, and new partnerships pushed Chainlink price to a new all-time high at $8.48...

image courtesy of CoinTelegraph

...

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The Technical Traders

Gold & Silver Measured Moves

Courtesy of Technical Traders

The next few weeks are certain to attract much attention to precious metals.  Hardly anyone can argue that Gold has not experienced an incredible upside price rally over the last 12+ months.  Recently, Gold closed above $1800 for the first time since 2011.  Our researchers believe the next target is $1935.  Keep reading to learn why we believe this is the next major price target for Gold.

Gold Weekly Price Analysis

Over the past 18+ months, Gold continues to develop price patterns that seem to be replicating going forward.  This pattern consists of an advance in price followed by consolidation/rotation in price to set up a new momentum base.  The example of this price advance ...



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ValueWalk

How Banks Can Mitigate Credit Losses

By David Donovan. Originally published at ValueWalk.

Without question, the economic impact caused by COVID-19 has rocked companies and consumers across the globe. Big companies are drawing heavily on credit lines. Mom and pop shops are struggling to stay afloat, despite the government funding small business loans to the tune of $659 billion, of which $130 billion is still unclaimed. Companies are now trying to figure out how they can proactively address high risk borrowers to avoid massive defaults that will inevitably putting banks in an even stickier predicament.

Q2 2020 hedge fund letters, conferences and more

With more than 40% of the econo...



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Kimble Charting Solutions

Commodity Index Price Reversal Raises Hope for "Double Bottom"

Courtesy of Chris Kimble

It’s been a rough decade for commodities… but there may be light at the end of the tunnel.

As you can see in today’s chart, the Equal Weight Commodity Index made new decade lows this spring at (1).

In general, this is bearish. BUT, prices reversed higher with a little attitude. Precious metals has been strong and crude oil is well off its lows.

This has given life to a potential double bottom pattern, as this year’s lows came in and around the 2009 financial crisis lows.

Is it possible that Commodities have created a long-term double bottom at (1)? Poss...



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Chart School

Dow 2020 Crash Watch - Update

Courtesy of Read the Ticker

Like 1929 the markets have bounced. This time it is on the back of the FED $6.5T money printing.

Previous Post: Dow 2020 Crash Watch 

But can the FED blow $6T every time the market rolls down to test support.

Yes, maybe before the US 2020 elections the FED will do 'what it takes'. But post elections not so much, the year 2021 is a long way from the next election (presidential or congress) and defense of the markets may not be so supportive at $6T or $10T per market smash. The FED may hesitate, and that will be window for stocks to break lower.

The 36 month simple moving a...

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Lee's Free Thinking

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

 

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

Courtesy of  

The COVID 19 pandemic is, predictably, worsening again in much of the US. Only the Northeast, and to a lesser extent some Midwestern states, have been consistently improving. And that trend could also reverse as those states fully reopen.

The problem in the US seems to be widespread public resistance to recommended practices of social distancing and mask wearing. In countries where these practices have been practi...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

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Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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