Shine Comes Back to Apple

Updated from 8:38 a.m. EDT

Apple Computer (AAPL Quote) reported a 30% jump in third-quarter revenue, with "staggering" iPod demand and robust Mac sales helping the company beat analyst estimates on both the top and bottom lines.

The Cupertino, Calif.-based company's Mac-based sales grew 19%, prompting at least two analysts to raise their ratings on the company Thursday despite a manufacturing glitch that will hurt upcoming back-to-school sales. Investors showed their love, recently pushing shares of Apple up $3.18, or 10.8%, to $32.76.

"The upside surprise in core Mac businesses this quarter was an important indicator, in our view. We have been waiting for signs that the anticipated 'halo effect' from Apple's retail stores and iPod would materialize," First Albany analyst Joel Wagonfeld wrote Thursday. "We have greater confidence in Apple's ability to sustain revenue growth and capitalize on operating leverage in its model." ...