Jason Schwarz is the author of The Apple Revolution, an e-book.
One of the reasons why Apple's stock was relatively flat after hours Monday was because Wall Street didn't know what to do with the GAAP accounting change. Too many analysts who should have been ready to interpret the data for their clients were left dumbfounded by the huge earnings beat.
Apple begins the day Tuesday with its lowest price-to-earnings ratio in years and as revised 2010 estimates come in, the company will have its lowest forward P/E of the Steve Jobs era. This disconnect won't last long. Over the next year, traders will price Apple stock back up towards its historical norm of a 32.7 P/E.
Philip Elmer Dewitt offers up an easy to understand year-over-year comparison of the numbers:
- Total sales: $15.68 billion, up 32% from last year's non-GAAP revenue.
- Earnings: $3.67 a share, up 46.8% from last year's non-GAAP EPS.
- Profit: $3.38 billion, up 49.6% from last year.
- Mac sales: 3.36 million units, up 33% year over year.
- iPhone sales: 8.74 million units, up 100% from last year.
- iPod sales: 21 million, down 7.6% from a year ago.
- iPod touch sales up 55% over last year.
- 50.9 million visitors to Apple's 283 stores, up 9% over last year.
- Gross margin: 40.9%, up from 37.9% last year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV