Kathy Huberty, Executive Director, Morgan Stanley Equity Research
Join Now! Need I remind everyone that although Kathy Huberty has name recognition, she is well known as an Apple Bear, and rates near or at the bottom of Philip Elmer-DeWitt’s analyst score card. I’m not sure why people pay attention to her when she is soooo wrong soooo often.
But in a functioning system you must have both the ying and the yang, for without the ying, there is no yang. And Kathryn Huberty makes up a very large portion of the yang.
Huberty at the bottom of the pile
Morgan Stanley analyst Katy Huberty lowered her EPS for the next three quarters but has a significant rebound in earnings in fiscal 2014 ($51.64) and 2015 ($57.06). She changed her estimates due to slower demand and inventory adjustments ahead of September product launches and believes the June quarter could be the trough with new iPhones and iPads helping regain momemtum.
For the March quarter Huberty is forecasting 33 million iPhones (down from 37 million) and 21 million iPads (up from 19 million) with gross margin of 38%. Total revenue is projected to be $41.4 billion (vs. guidance of $41 to $43 billion and the Street at $42.7 billion) with EPS of $9.59 (vs. guidance of $9.24 to $10.24 and the Street at $10.13).