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Investing

Unfounded Apple Earnings Worry

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By Douglas A. McIntyre Published
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Apple (NASDAQ: AAPL) announces earnings at the close today. The sell-off in the company’s shares so far this month shows that many investors believe that the sale of iPhone and iPads will not be up to expectations. There is even more concern that Apple’s forecasts for the current quarter and the balance of the year will be soft. Apple normally guides toward the low end of expectations, and then beats them. This quarter, that trend may end.

By most measures, Apple’s value is not really extraordinary. Its PE on  a trailing twelve month basis is only 16, which is modest for a growth stock which controls market share in most of its businesses.

Apple also has an important card it will play soon. The iPhone 5 will be released in the next several months. It has an important advantage over its recent predecessors. The iPhone 5 will run on the wildly successful 4G networks deployed by AT&T (NYSE: T) and Verizon Wireless. The desire for consumers to own a smartphone which combines high-speed wireless with a new iPhone will be irresistible.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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