Apple Inc. (NASDAQ: AAPL) is going to be the key earnings for tech stock investors and traders today. Last week we pointed out that the stock was using its 200-day moving average as support, but a new adjusted 200-day moving average of $164.80 has been breached this morning in the immediate hours before the earnings report. We would note that many technicians would claim this is not enough of a violation to draw a huge red flag with shares approaching $163.00 in late morning trading; but some purists would argue that violation is a critical juncture.
We’d note that estimates have also changed marginally (see Friday’s estimates)since our Friday estimates were shown. First Call now has estimatescurrently pegged at $1.08 EPS and $7.37 Billion in revenues. As far asnext quarter (also its fiscal year end), we show estimates as $1.24 EPSon $8.32 Billion in revenues. Here are some other full data points ahead of the report.
It now appears that options traders are bracing for a move of $11.00 ormore in either direction. That number was only $10.00 late Friday.Analysts also have an average of over $218.00 per share now.
We are still concerned about the company’s non-sales period where ithad no iPhones to sell for more than a month of the quarter. While wehave that concern, Steve Jobs did already address this and it isn’t anunknown bit of data to the industry insiders.
Jon C. Ogg
July 21, 2008
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