Easy Money Has Already Been Made In Apple

Apple reported blowout earnings last night. going into the announcement, expectations were very high. these high expectations resulted in a consensus estimate of $9.97 in earnings and $ 38.73 per share for revenues.

Whisper numbers were much higher. Whisper numbers are unofficial and unpublished numbers. I estimate that the whisper numbers were 7%-10% higher than the published numbers.

One of the key metrics analysts were looking for was the number of iPhone sales. The published consensus estimate was about 30 million units. At the Arora Report, we estimated the whisper number for iPhone sales to be about 33 million units.

Apple reported Q1 EPS $13.87 and sees Q2 EPS about $8.50 vs. the consensus $8.03.

Apple sold 37.04 millon iPhones in Q1, up 128% from last year, 15.43 million iPads during Q1, up 111% from last year, 5.2 million Macs during Q1, up 26% from last year, and 15.4 million iPods during Q1, down 21% from last year.

The CFO of Apple, Peter Oppenheimer, said he was very happy to have generated over $17.5 billion in cash flow in Q1.

Apple CEO Tim Cook said, “We think there’s much more cannibalization of Windows PCs by the iPad. and we love that trend. you can see it beginning to emerge everywhere. that number is very large when you look at the Global 500. I think that it’s great that we’ve sold over 55 million iPads and we’ve only been in the business since April of 2010.”

Apple had 358 stores open during the quarter.

Apple stock was halted. after the halt, the stock opened up $39 and has since pulled back to $451.

After the celebration is over, serious questions will be asked. when will the law of large numbers set in? will P/E expand? has the pent up demand responsible for the blow out earnings been satisfied? what will Apple do with its massive hoard of cash?

Easy Money Has Already Been Made In Apple

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