Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, July 27, 2012

Article Excerpt

APPLE INC., $585.16, Nasdaq symbol AAPL, fell 3% this week after the company reported lower-than-expected revenue and earnings. That’s mainly because it will probably launch a new version of its hugely popular iPhone smartphone later this year. As a result, demand for the current model is falling. The iPhone now accounts for nearly 50% of Apple’s revenue. In its 2012 third quarter, which ended June 30, 2012, Apple sold 26.0 million iPhones, up 28.0% from 20.3 million a year earlier. However, that’s down 25.8% from the 35.1 million iPhones it sold in the second quarter. The company also sold 84.3% more iPad tablet computers in the third quarter, while Mac computer sales volumes rose 1.8%. Apple’s overall revenue rose 22.6%, to $35.0 billion from $28.6 billion a year earlier. Even so, that missed the consensus estimate of $37.0 billion. Earnings rose 20.7%, to $8.8 billion from $7.3 billion. Earnings per share rose 19.6%, to $9.32 from $7.79. That also fell well short of the…