Apple set to release earnings tomorrow as revenue race with Microsoft narrows

Mon, Jul 19, 2010

Finance, News

Tomorrow afternoon, Apple will release its earnings from the quarter gone by. Over the past few quarters, Apple has consistently blown by analyst estimates while delivering jaw dropping results that continue to pleasantly surprise both analysts and investors. Moreover, some anticipate that when Apple and Microsoft both release their earnings later this week, Apple’s quarterly revenue may top Microsoft’s for the first time in history.

Andy Zaky writes for CNN:

Financial Alchemist’s Turley Muller, who is currently the most accurate analyst on Apple, offers a more realistic view of the company. Muller believes that Apple will report about $3.1 billion in net income on ($3.35 in EPS) on $15.15 billion in revenue. And while I think Muller has left some room for upside surprise, it’s clearly best to use his numbers rather than the consensus as a measure of comparison.

Microsoft, on the other hand, is expected to earn $4.1 billion in net income ($0.46 in EPS) on $15.26 billion in revenue when it releases results on Thursday – just a hair above Muller’s revenue estimates for Apple…

Thus, if Apple reports at the higher end of Muller’s estimates, and if Microsoft reports closer to the consensus, it’s quite possible that Apple might have a shot to beat Microsoft in revenue for the first time in its history this quarter.

Apple’s earnings results will hit newswires somewhere around 4:30 PM EDT, shortly after the stock market closes. Analysts on Wall St. anticipate Apple’s earnings to come in at $3.10 per share on revenue of $14.74 billion. During the same quarter a year-ago, Apple’s earnings came in at $2.01 per share on revenue of $9.73 billion. Note, the earnings for the past quarter will include, for the first time, revenue from the wildly successful iPad.



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