This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple's Earnings Rise 43%, Edging Past Estimates

Apple Computer (AAPL), well known in recent years for its sleekly designed iMac computers, edged past analysts' estimates Tuesday, recording a 43% rise in its third-quarter earnings.

The Cupertino, Calif.-based computer company reported a net profit of $163 million, or 45 cents a share, up from $114 million, or 35 cents a share in the same period last year. Apple narrowly beat Wall Street's earnings estimate of 44 cents a share for the latest quarter, according to First Call/Thomson Financial.

Those earnings figures, though, exclude a gain of $37 million, or 10 cents a share, from Apple's sale of shares of ARM Holdings. Including that gain, Apple's net income rose to $200 million, or 55 cents a share.

Revenues rose 17%, to $1.83 billion, from $1.56 billion a year earlier.

The positive earnings announcement comes a day ahead of a highly anticipated keynote speech by Steve Jobs, Apple's chief executive. Jobs is expected to highlight his company's latest products Wednesday at the MacWorld Expo in New York.

Many industry analysts are eagerly awaiting news about new Apple software and hardware, especially enhancements to the computer maker's PowerMac and its iMac line, which has posted sluggish sales growth lately.

Apple said it sold nearly 450,000 iMac systems in the quarter, and Jobs said in a statement that his company had shipped 3.7 million iMacs since they were introduced.

"The question is not whether they'll upgrade" iMac, said Andrew Neff, an analyst with Bear Stearns in New York. "It's how are they going to do it. It's not the cake; It's the icing."

"We're only getting part of the story today," Neff continued. "We're looking for something really innovative tomorrow -- something where we say, oh wow, that's really cool."

A strong earnings projection and a looming MacWorld trade show, however, failed to stimulate Apple's stock Tuesday. Although Apple's shares rebounded after dipping as low as 56 7/8, the company's stock closed Tuesday at 57 1/4, down 1 1/16, or 1.8%.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs