Maynard Um, Analyst, Wells Fargo
Um, this guy thinks both this quarter and next will come below his estimates, yet he reiterates an outperform rating. Hmmmm, Um….let’s see, below my estimates, yet still outperforms. Maybe I’m talking out of both sides of my mouth, Um, yes, yes, that’s the ticket… or not.
Apple having a pretty big day today, trying desperately to break out of that ominous descending wedge. Not even close to a breakout, but a healthy 1.7 percent advance as of 12:30 EST. The overall markets just shot out like a rocket, reaching new highs. So, it’s disappointing that Apple is still dislocated from the markets.
Shares of Apple (AAPL) are up 74 cents at $427.72, continuing pre-market gains, despite a negative article this morning by Reuters‘s Clare Jim stating that manufacturing partner Hon Hai Precision saw a Q1 revenue decline of 19%, which one analyst, KGI Securities’s Ming-chi Kuo, attributed to a greater-than-expected “correction” in iPhone sales.
Perhaps helping shares, Wells Fargo’s Maynard Um this morning reiterates an Outperform rating on Apple shares, writing that while both fiscal Q2 and Q3 (March and June) results could come in below his own estimates, “iPhone expectations are likely already tempered,” and baked into the stock, in his opinion, while “sentiment should improve post-earnings into a new iPhone launch, improving gross margins particularly with easing yr/yr compares in the back half and, with any luck, reset Street estimates.”