Wednesday, June 27, 2012

Q3 2012 Estimates



iPhones - 32,000,000
Macs - 4,620,000
iPads - 21,000,000
iPods - 6,500,000

Total Revenue: 42,231,100,000
EPS: 12.82 
Gross Margin: 46.0%




The above are my estimates for the June quarter for Apple... I submitted them to the Braeburn group yesterday evening.  When the average is published, I'll post a link here.  My Highlights:


Revenue 42.231 billion 


This is only a 48% YOY increase in performance.  Last year at this time, Apple posted revenue of 28.571 billion.  The last 4 quarter YOY percentages are: 82% - 39% - 73% - 59% 


That 82% was last year's Q3.  If we were to see a performance of 82% revenue growth again this Q3, we would be at 52 billion in revenue..  52 billion revenue in one quarter will happen - but not until Q1 13, but it won't be 52 billion - It will be 70 billion and that equates to 56% growth YOY.  That's about how I see the YOY revenue growth for a while, settling in at the 50% range, which is nothing to sneeze at when you are talking about this size of number.


EPS - 12.82


65% YOY growth. Compared to prior quarters, this is actually conservative. I'll go back 8 quarters on this one starting with Q3 10. 75% - 68% - 75% - 92% - 122% - 52% - 116% - 92%.  The only EPS percentage below 65% is the Q4 11 miss due to the delay of the iPhone 4s. I have no problem with 65% YOY growth, and I'm confident this will be achieved.


iPhones - 32 million; Revenue = 20.672 billion


32 million represents 57% YOY growth, and -10% sequentially.  The growth in this category is moderate (historically speaking) due to potential buyers holding off for the much anticipated iPhone 5 with 4G LTE.  In Q4, we will be lucky to see this number if the 5 doesn't launch until October.  We can only hope for an early September launch to boost the Q4 iPhone numbers, while staving off the Android / Samsung onslaught. 


Macs - 4.620 million; Revenue = 5.913 billion


17% growth YOY, and 5% sequentially.  The upgrade of the macbook line will help this category, these growth rates are typical of the Mac line of computers, unlike the rest of the PC makers flailing 
around in single digit growth, if not negative growth, due to the popularity of the iPad.


iPads - 21 million; Revenue = 11.025 billion


Apples first 20 million iPad unit quarter should happen right here, with a total units sold of 21 million. With an average ASP of 525 due to the high demand of the iPad 2, total revenue will be just over half of what the iPhone produces.  Apple most likely won't break out these numbers, but I believe that Apple will sell 7 million of the lowest level iPad 2.


iPods - 6.5 million; Revenue = 1.020 billion


The iPods continue to decline at -14% YOY, but are still big sellers for children that are not yet old enough to have a phone.  We are truly raising the "APP generation".  10 years from now, when the world's 8 - 10 year olds are 18 - 20, the App TV generation should be in full swing, with Apple TV fully integrated into people's lives as buying content ala carte becomes the norm. 



Peripherals - Revenue = 600 million 
Software - Revenue = 800 million 
Music / Other - Revenue = 2.2 billion



Above is the rest of the revenue story, with Music / other actually eclipsing iPod revenue, which I believe is going to be an even bigger story in the years to come, due to iCloud, and total convergence when iTV finally arrives.  I haven't got the numbers in front of me, but I plan my next post to be about the growth over the last 5 years in this category, complete with YOY percentages.



Fiscal year end:
Revenue = 170 billion 
EPS = 52.49

I revised EPS downward from my price projection post, due to the iPhone 5 most likely NOT launching until October.  Obviously if I hear otherwise, I will move back to 54.69. 


I am long AAPL

Tuesday, May 29, 2012

1 year price target - June 1, 2013


The Braeburn group, which I am an active member of, is publishing a 1 year price target average..  This will be an average of the participants that want to participate in the PPS projection..  The following is my post within that group.

Here’s my projection…  I’m basing my numbers on a 13.5 PE assumption.  The following numbers are starting Sept 1, 2012..  The pattern that I am projecting for each quarter is for PE expansion before and after earnings, followed by compression at the 2/3 quarter mark - down to 13.5. 

13.5 PE might be conservative, but recent history has shown this to be the case, especially with the heavy manipulation by the institutional investors.. the big boys if you will.  The reason I claim manipulation is simple:

The stock ran like hell all the way up to 644 / share.. before earnings.  Then it drops to 530..  All in a short span of time.  644 = a PE of 18…  Then the stock falls all the way down to 530 for a PE of just over 12 bucks..  I don’t see the stock moving like that for any other reason than institutional investors getting involved in a big way.  Mainly because, there is absolutely nothing wrong with Apple.. With my earnings projections, I see Apple at $931.77 on June 1, 2013

Here is the earnings breakdown, quarter by quarter, beginning on Sept 1, 2012, followed by the price with a multiple of 13.5, and finally in parenthesis my quarterly earnings target.

Sept 1 - $46.24 = $624.24 (13.02)
Dec 1 -  $54.69 = $738.31 (15.50)
Mar 1 -  $63.32 = $854.82 (22.50)
Jun 1 -  $69.02 = $931.77 (18.00)

$530.12 is the "post earnings" low this quarter.. (12.9 PE) I’m saying that the same type PE compression will happen each quarter, of course it won’t happen exactly like that, but this is what I’m using as a guideline. As I write this on May 29th, we are sitting on $572.27 with a 13.94 PE ratio..  I’m using this formula for each quarter to come up with my final 1 year target of $931.77 on June 1 2013.

Additional highlights:  I’m projecting 55 million iPhones, and 33 million iPads for Q1 13…  Revenue comes in roughly at 71 b, when you add 12 million iPods and 6.5 million macs.
I’m counting on the usual catalysts that are discussed all over the web.

Mac refresh and continuing to grow at a 17% average for a full year
Continued iPad domination
An Amazing iPhone 5 rollout - (Oct 1)
China / Asia Pacific explosion.
No TV in 2013, but I believe it will happen by mid 2014..

I will post the Braeburn group average for PPS on June 1 2013, right here, just as soon as it's published. Come back around June 5th or so..

I will have my June quarter estimates up by Friday, June 29th.

I will post the Braeburn group June quarter consensus as well, when that is published..  Look for that in early July. 

Thanks for reading,
      Dennis Hildebrand

Thursday, March 15, 2012

Preliminary Q2 numbers



iPhones - 38,500,000
Macs - 4,750,000
iPads -13,750,000
iPods - 7,500,000

Total Revenue: 44,065,000,000

EPS: 13.11 



Gross Margin: 44.4%


Apple will be reporting the numbers again around the 3rd week of April as usual.  We at the Independent AAPL analysts are getting our spreadsheets ready.  This is my second go round this quarter.  I started with iPads at 12 million a month ago, but I just bumped that up to 13.750 based on the aggressive rollout, and the Tim Cook factor. I also bumped up my iPhones estimates by 1/2 mil.



Now that Tim Cook is unabated by Mr Jobs - I mean that respectfully - I believe that we are going to see even more aggressive growth.  Mr Cook, in his own words, will continue to "make big bets" on the ramp up to product launches. It seems that even the mighty Mr Cook can't bet high enough for the mass hysteria to an Apple product launch.


In going through the numbers in Q2: 

  • At 38.5 million iPhones shipped the YOY growth comes in at 106% and sequentially up 4% - Last years growth percentages were 113% and 13%.  The Q1 numbers this year, were such a massive blowout, that I'm taking the sequential percentage number down a skosh.  Last year in this period, we sold 18.6 million iPhones.  For FY 12 - I'm at 150 million iPhones shipped (+108%)
  • MACs at 4.750 million is 26% YOY growth, and -9% sequentially. Last years total in this time frame was 3.760m.  For FY 12 - I'm at 20.45 million MACs shipped (+21%)
  • iPads at 13.750 mil - thats 193% YOY and -11% sequentially. For FY 12 - I'm at 62 million iPads shipped (+92%)
  • iPods at 7.5 mil.  Thats -17% YOY and -108% sequentially. For FY 12 - I'm at 34.5 million iPods shipped (-18%)
  • Revenue at 44.065 billion is up 79% YOY and down 5% sequentially.  For FY 12 - I'm at 182 b (+68%)
  • EPS at 13.11 is a 105% increase YOY and down a mere 6% sequentially. For FY 12 I'm at $56 (+102%)
Be aware  - The last time I made yearly predictions like this, in my commentary, my feeling was that I was being very aggressive..  well I got the MACs and iPads right on, but missed to the downside on everything else. Especially iPhones, revenue, and EPS.  Its here, if you want to check it out.  

I will update my estimates and post the final numbers before I ship them off to PED for the quarterly smack down.

Dennis Hildebrand

Monday, February 13, 2012

Some great information for Cancer patients

I'd like to take a brief time out from Apple talk to send those that are interested in some great information about cancer recovery or people that are engaged in any type of cancer battle.  This is from David Haas, he is a fellow blogger that has contacted me, and asked if I would publish some of his great stuff.  I checked it out, and this guy definitely has some good information..

Please check it out


Why exercise is important for cancer patients

You will find more links to his various blogs on this page

Thanks,
        Dennis

Tuesday, January 24, 2012

Apple's Blowout Q1 - How I did

This is what I sent into Fortune.com (PED)

 
   Dennis prediction                 Actual
iPhones - 34m       37.04m -  missed by 3million - (killed me)                                                                    
iPads - 15m           15.4m   -  missed by 400k
iPods - 15m           15m      - dead nuts
Macs - 5.25m         5.2m    - missed by 50k
Rev - 43.36b          46.33b  - missed by 3b! (iPhones)
EPS - 11.59          13.87    - missed by $2.28 (iPhones and GM)

GM - 42.3%           44.7% - missed by 2.4%  

My iPhone estimates missed by 3 million and change, which of course is why I missed the revenue by 3 billion.  Also, my gross margin was off by a couple of percentage points which really affected the accuracy of my EPS number.  My iPads / iPods / and MAC numbers were VERY close.  In fact, I hit the iPod number right on the money - Last time that I happened I saw my name on CNBC..

This was really an amazing quarter - I really thought my iPhone number was going to be close..  It just goes to show how true it is that Apple is the true master of pent up demand.  I like what Tim Cook says about Apple's iCloud being a strategy, as opposed to just posting a number.

For me - Apple's cloud has changed my life for the better.  The auto synch and back up has convinced me that I need look nowhere else for my digital needs.  I like things that make my life simple - not complicated.

These numbers are proof in the pudding that this strategy for the Apple eco-system is just going to grow and grow and grow.  iCloud in China?  with 300 million users.. my gosh.. imagine the sheer volume of IOS devices over there, and we are just in the beginning stages of this thing.

Congratulations to all Apple users and investors

Dennis

                                                 


Wednesday, October 19, 2011

Wisdom

I'll post about Apple's latest quarter in a day or 2, but I just stumbled on this nugget, which has nothing to do with Apple or investing..  Or does it?

The Dalai Lamai, when asked what surprised him most about humanity, answered:


"Man. Because he sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived."

Wednesday, October 12, 2011

4th quarter projections for Oct 18th

Hello Folks,

It's that time again..  Apple reports numbers on October 18th which is next Tuesday.  It will be somewhat somber without the presence of Steve Jobs, but Timmy boy will be his usual non-chalant self while the numbers speak for themselves.  There has been much concern in the media and the blog-o-sphere about the delay of the much rumored iPhone 5.  As it turns out, there was no iPhone 5 - Apple launched the iPhone 4s and sold a million of them on launch day.  Another record, another day in the life of Apple.  Of course, this is not news.. I'm merely repeating what everybody else has already said..

So how does a blogger write anything new about Apple?  It's practically impossible. I mainly enjoy reading these bloggers:  Andy Zaky  (Bullish Cross) / Horace Deidu (Asymco), and Robert over at Posts at Eventide.  Andy now charges for his opinions (rightfully so) and Robert is a wealth of statistics, and objective information that he freely posts for the world to consume.. A repository of information as he calls it.  Horace is a guy that assimilates vast quantities of data, then draws these incredibly creative charts, which are accompanied by his equally creative commentary.  Horace (Asymco) is a little more broad, he talks about the mobile industry, but Apple is usually a big part of his subject matter. Also - over at the Apple Finance board, there are a whole slew of intelligent opinions bantied about.  This board has long term members that are experienced traders whether it be options, day trading, or buy and hold..  I check into these places on most days.  Of course, I have to mention Apple 2.0 and Phillip Elmer Dewitt, at Fortune - If you are looking for info on Apple - PED's blog is the place to be.

There is a guy that cruises most of these sites by the name of Falkirk that writes very creative and interesting opinions on Apple as a company.. he's really insightful - you will see him comenting in most of these destinations.  All of these websites are a click away from this blog.

My opinion on Apple stock is buy as much as you can, and hold as long as you can.. 

The weird thing about Apple is this:

Everybody waits and anticipates Apple's next big move.  There are arguments on both sides bullish and bearish.. People go back and forth for months, but Apple never reveals their hand until the day they say they are going to announce something - Then they do just that.  They take one hour or so to make a presentation, then they shut down and let the world argue over what they just presented for 3 or 4 months..  Usually the quarterly earnings calls get the most hoopla.

Consistent through all of this is one big thing.  Apple keeps exceeding expectations when REAL numbers are published.  We can argue all day long about the recent announcement of the iPhone 4s being not good enough.. They still sell a million in 24 hours and break another record.  They just keep doing it over and over again.  I don't see that trend stopping anytime soon.  I've been saying this since I first started this blog.  We've still got all of 2012 for this type of growth.. it won't start tapering off until end of 2013 / beginning of 2014 - there's just too much momentum, and market share to grab.  I'm not saying the growth will stop at the end of 2013, you just won't see the 80% YOY growth in revenue / 100% growth in EPS anymore.

Ok - here's my prediction for Q4 - I sent these numbers to PED on September 24th, also at that time submitted to the AAPL independent analysts group that I belong to.

YOY in parenthesis

Revenue - $36,419,000,000   (79%)
EPS ----- $9.94    (114%)

iPhones - 26,750,000  (90%)
iPads - -  14,800,000  (261%)
Macs - -    4,750,000  (22%)
iPods - - -  7,450,000 (-18%)
Gross margin - 42.6%
Int'l sales - 66%


Of the 47 or so analysts polled on Fortune, my revenue is third highest..  The rest of my numbers have a similar rank.  The gross margins will be that high because they have NOT changed the basic form of the iPad or iPhone.  They changed the guts of the iPhone, but they did not create a case re-design. 

For the record - I came in 4th place overall last quarter, 12th place prior quarter, and 8th the quarter before that.  Like I said, there's 47 or so analysts in the smackdown now.

Q1 preliminary numbers..

Revenue - 46 b
EPS - 11.30
iPhones - 30m +
iPads -  - 20m
Macs - - - 5.5m (33% growth)
ipods --     9m
GM -  -  -  42%
Int'l sales - 70%

Finally 2010 - 2011 YOY stats (with my Q4 numbers added in)

Revenue - 78%
EPS -  -  102%
iPhones - 105%
iPads -  - 389%
Macs -  -   22%
iPods -     -15%
GM 2010 = 40.00%
GM 2011 = 40.80%


Astounding!

Thats it - see you online on the 18th during the conference call on one of the many live blogs..