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

Powell Spews Baby Poop In Attempt To Reassure Investors

 

Powell Spews Baby Poop In Attempt To Reassure Investors

Courtesy of  

Let’s look at a few of Chairman Pow’s words at yesterday’s press conference. Please read them and tell me whether this sounds to you like a man who doesn’t understand what he’s doing. Or if you think he’s deliberately pulling words out of his ass, stringing them together, and spewing them from his mouth in an effort to gaslight the investing public.

I’ll take the latter. The Fed is in the propaganda business. It knows what it is doing. Double talk, lies, and utter bullshit are its stock-...



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Lee's Free Thinking

Powell Spews Baby Poop In Attempt To Reassure Investors

 

Powell Spews Baby Poop In Attempt To Reassure Investors

Courtesy of  

Let’s look at a few of Chairman Pow’s words at yesterday’s press conference. Please read them and tell me whether this sounds to you like a man who doesn’t understand what he’s doing. Or if you think he’s deliberately pulling words out of his ass, stringing them together, and spewing them from his mouth in an effort to gaslight the investing public.

I’ll take the latter. The Fed is in the propaganda business. It knows what it is doing. Double talk, lies, and utter bullshit are its stock-...



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Zero Hedge

Visualizing The World's Stock Market's Performance For The Past 30 Years

Courtesy of Jeff Desjardins, Visual Capitalist

Charting the World’s Major Stock Markets

Most investors around the world are familiar with the S&P 500 index.

Not only is it the most widely accepted barometer of U.S. stock market performance, but it’s also been on a 10-year bull run, now sitting at all-time highs near 3,170.

This week, we chart those historical returns, and then use the U.S. benchmark as a backdrop to compare other major stock markets around the world, such as those in Europe, Asia, and Canada.

Putting Them All at Scale

One challenge in comparing global markets directly is that all indices are on arbitrary scales. ...



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Chart School

Funds are getting ready to move out of USA

Courtesy of Read the Ticker

Just before the hang over in the US equity markets, money will move and take their well earned gains else where. Here is why.

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Charts in video.

US is in the late cycle boom.

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US stock market with the US dollar, they have risen together from 2012. A change of this will force money to move.


Cli...



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Kimble Charting Solutions

Euro Breakout In Play? Gold Bulls Sure Hope So!

Courtesy of Chris Kimble

The Euro has spent much of the past 2 years trading in a down-trend.

Though precious metals like Gold have fared well, this has been a bit of a headwind because it means that the US Dollar has remained firm.

Big Test In Play for the Euro

The Euro is testing a confluence of important support just as the downtrend is narrowing and ready for a “break”. That support includes lower falling wedge support and the Euro’s long term up-trend support line (see points 1 and 2).

If the Euro can succeed in breaking out at (3), it would be bullis...



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Insider Scoop

8 Healthcare Stocks Moving In Friday's Pre-Market Session

Courtesy of Benzinga

Gainers
  • Sarepta Therapeutics, Inc. (NASDAQ: SRPT) stock surged 36.4% to $137.00 during Friday's pre-market session. The market value of their outstanding shares is at $6.1 billion. The most recent rating by Janney Capital, on December 13, is at Buy, with a price target of $175.00.
  • GlaxoSmithKline, Inc. (NYSE: GSK) shares surged 1.1% to $46.44. The market value of their outstanding shares is at $112.9 billion. According to the most recent rating by UBS, on November 21, the current rating is at Buy.
  • AstraZeneca, Inc. (NYSE: ...


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Digital Currencies

Three Men Arrested In NJ For Running Alleged $722 Million Crypto Ponzi Scheme

Courtesy of ZeroHedge View original post here.

Authored by Kollen Post via CoinTelegraph.com,

United States authorities in New Jersey have announced the arrest of three men who are accused of defrauding investors of over $722 million as part of alleged crypto ponzie scheme BitClub Network, per a Dec. 10 announcement from the Dep...



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Members' Corner

Tobin Smith: Foxocracy, the 2020 Election, and the Stock Market

 

For decades, Fox News has been spreading false information and hooking its audience into an angry, xenophobic and paranoid worldview. It's no mystery that Fox was instrumental in the 2016 election -- but how did it do it? How did it gain so much influence? Tobin Smith, CEO of Transformity Research, Inc. and former Fox News contributor and talk show host, explores this phenomenon and discusses Fox News’ emotionally predatory and partisan propaganda media strategies and tactics in his new book, ...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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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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