The Business Press Maven loathes the obvious, and I never thought I'd have to make such a contemptibly obvious point as the one I'm about to make again. But since the business press makes the same quarterly mistake about Apple ( AAPL) as naturally as a sentient human draws breath -- well, here I go again.Here is how Apple works: For about the last half dozen quarters and, truly, for the better part of its history, the company has downplayed future expectations only to surpass them.
They Just Don't Get Apple's Numbers!
"Apple Inc. on Tuesday reported a first-quarter profit that rose 58% from a year ago, but the company's shares tumbled in after-hours trading as the consumer-electronics maker gave an earnings outlook that fell short of Wall Street analysts' forecasts. Apple typically gives conservative forecasts... "Kevin Allison from The Financial Times, The Business Press Maven is nodding in your general direction. By
"The company's finance chief, Peter Oppenheimer, called it "our best year ever." But investors were looking to the future, not the past, and they didn't like Oppenheimer's forecast for the second quarter: earnings of 94 cents a share on sales of $6.8 billion. That is below analysts' estimates for earnings of $1.09 a share on revenue of $6.99 billion."Anyhow, we can go on publicly flogging members of the business media for this essential oversight. I rather like it. But the larger point is that you, the savvy investor, must always look at Apple forecasts with a critical eye. Even when the business media acts as remedial students of history and even when Apple, as in this case, might have an actual issue or two going forward.