This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 Next Bite

Apple Computer's (AAPL) first-quarter earnings announcement later Wednesday may be lacking in drama, but it certainly won't be without an audience.

CEO Steve Jobs already announced many of the headline numbers, including revenue and number of Macintosh computers and iPods shipped , at last week's Macworld conference. But investors will still be scrutinizing the earnings announcement to get a sense of where the company will go next.

Although there's eagerness to hear actual financial guidance, other items may draw as much or more interest from investors. Among them: the company's operating margin in the just-completed quarter, any word on its retail store build-out , and any hints of new products to come.

"The fundamental momentum of this company is becoming more secure, so the guidance may have less impact on investor sentiment than it has in the past," says Tony Ursillo, a buy-side analyst at Loomis Sayles & Co., which holds Apple shares.

As revenue has ballooned over the last two years, so too has the company's operating margin. Ursillo and other investors will be looking to see if that trend continued in the fourth quarter, when the company's sales significantly overshot its revenue guidance and the Street's expectations.

Much of Apple's stock and financial rebound has been driven by the iPod and its investment in retail stores. Analysts will be looking to see if the company has a hit new product up its sleeve that might succeed the iPod as a growth driver. They'll also be looking to see just how big the company's retail chain can get.

"Not to take anything away from the iPod or the iPod nano -- those are hot products that deserve to get attention -- but the one thing we think is underappreciated by the Street is Apple's retail stores," says Dave Bujnowski of Coburn Ventures, a consulting firm. "Any comment they have on whether it's going to be 160 stores by end of year -- or 170 -- that's what I'm going to be interested in," adds Bujnowski, who manages a mock portfolio in which Apple is one of the top holdings.

To view a video preview of Wednesday's call, click here .

1 of 3

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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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