Apple (AAPL) reported earnings after the market closed yesterday, and the report was solid but boring. Apple posted earnings of $1.28 per share vs. analyst estimates of $1.23 per share, and revenue of $37.4 billion vs. estimates of $37.98 billion. Apple is up a moderate 2.7% today after the earnings announcement.
The revenue miss was likely due to declining iPad sales, with units down about 9%. IPhone sales were up 12.7% from the prior year but still short of analyst estimates of units sold.
I stand by my statement that I would wait until after earnings to buy, since I was concerned hype was already priced in. Yes, Apple did fine on earnings and is up a bit. But all of the articles on Apple going into earnings were hypothesizing huge numbers that blew past analyst estimates. That didn’t really happen.
This could be a good thing for you though. Strong gross margins and earnings mean Apple is in a good place financially and operationally. And I am still cautiously optimistic that the iPhone 6 and iWatch will come out before the end of the year. The fact that iPhone sales didn’t meet analyst estimates may mean that there are consumers holding out on a purchase until they can get the iPhone.
The fact that there wasn’t a huge pop after earnings means the stock is still low enough to buy in now and profit off of the new product releases later in the year. I’d wait until the stock comes down a bit in the next few days and get in.