Live Blog Apple Q4 Live Blog
NEW YORK (TheStreet) –– Apple (AAPL) - Get Apple Inc. Report has had an action-packed several weeks, with the launch of the new iPhones and announcement of new iPads and Macs, but all eyes will be on the company's earnings and its outlook for the all-important holiday season.
Cantor Fitzgerald analyst Brian White believes that as Apple continues to strengthen its position in the smartphone market, with the release of the iPhone 6 and iPhone 6 Plus, there will be a renewed appetite for these devices. "During our China Tech Tour, we highlighted unusually strong demand for Apple's new iPhones heading into the December quarter, and we believe the appetite for these new devices in China and across Asia will prove to be an epic event," White wrote in a research note, previewing earnings.
Apple earned $1.42 a share on $42.12 billion in revenue, as the company shipped 39.3 million iPhones, 12.1 million iPads and 5.5 million Macs in the quarter. Gross margins for the quarter were 38%, compared to 37% in the year ago quarter. For the holiday quarter, Apple expects to generate between $63.5 billion and $66.5 billion in revenue, with gross margins between 37.5% and 38.5%.
Analysts surveyed by Thomson Reuters expect the company to earn $1.30 a share on $39.86 billion in revenue for the fiscal fourth quarter. Guidance for the fiscal first quarter, the holiday quarter is expected to show Apple will generate $63.49 billion in revenue, earning $2.39 a share.
Cantor Fitzgerald analyst Brian White gave initial thoughts on the quarter, noting the company is in the midst of what he calls a "super cycle," as it launches new categories. "More important than this earnings report is that we believe Apple is in the midst of another "super cycle" with a new product category expected to launch in early 2015 with Apple Watch, combined with the company's recent entry in the "phablet" market with the iPhone 6 Plus and the launch of Apple Pay," White wrote in a note to clients. "With Apple trading at just 11x our CY:15 EPS estimate (ex-cash), we believe the market needs to start thinking more boldly about Apple and appreciate the company's opportunity to reinvent new product categories for years to come."
Apple shares ended the session sharply higher, gaining 2.1% to close at $99.76. Shares are slightly active in after-hours trading, gaining 1.3% to trade at $101.06 following the earnings call.
--Written by Chris Ciaccia in New York
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