Apple First Quarter Earnings Sneak Peek

Wall St. Revenue Expectations: Analysts predict a rise of 17.9% in revenue from the year-earlier quarter to $54.6 billion.

Stock Price Performance: Between October 19, 2012 and January 16, 2013, the stock price fell $103.75 (-17%), from $609.84 to $506.09. The stock price saw one of its best stretches over the last year between February 2, 2012 and February 14, 2012, when shares rose for nine straight days, increasing 11.9% (+$54.34) over that span. It saw one of its worst periods between July 19, 2012 and July 26, 2012 when shares fell for six straight days, dropping 6.4% (-$39.44) over that span.

Key Stats:

Apple enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 45.5% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 94.1% in the second quarter of the last fiscal year and 20.7% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.5 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.57 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 16.6% to $38.54 billion while assets rose 11% to $57.65 billion.

Analyst Ratings: With 36 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)