Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Ticker Shock: Apple Looking Shiny, Yahoo and Broadcom Pleasant Surprises


Wednesday's top stories and stocks with potential to move.


Asia got walloped as we slept. In fact, the Nikkei was down more than 6%. Europe is in the red.

But hey, at the time of this writing, oil is below $70 a barrel. You gotta be an optimist these days, right?

Anyway, we are off to a lower open this morning.

Apple (AAPL)
After the close on Tuesday, Apple reported a fourth-quarter profit of roughly $1.14 billion or $0.26 per share. Meanwhile, its revenue line came in at approximately $7.9 billion. That's a beautiful jump over the $1.01 a share and the roughly $6.22 billion in revenues it generated in the same period last year.

Folks, that EPS number was way north of the $1.11 per share analysts had been looking for. This, my friends, may be just what the doctor ordered. Finally, some good news, after the sheer pummeling the stock has been taking lately.

However, Apple's CFO, Peter Oppenheimer, offered only "prudent" expectations for the remainder of the quarter, with earnings of $1.06 to $1.35 per share and sales from $9 billion to $10 billion.

Not great, given the fact that the Street was reportedly looking for $1.65 a share and a smidge over $10.5 billion in revenue.

But I think the company's first-quarter estimates may be on the conservative side, and that it'll beat those expectations. In short, I think the stock rocks today, and will soon be enjoying triple digits again.

Yahoo (YHOO)
After the close yesterday, Yahoo disseminated its third-quarter numbers, with earnings of $0.04 per share. Not counting items, earnings were approximately $0.09 per share, which was essentially in-line with expectations.

Also on the plus side of the equation, management said it's cutting approximately 10% of its workforce. Not good news, obviously, for Yahoo's employees, but encouraging for shareholders, to whom it may demonstrate that Mr. Yang is getting serious about saving money and enhancing shareholder value.

However, there are other negatives: Yahoo offered fourth-quarter gross-revenue guidance of $1.77 billion and $1.97 billion - a 3% decline from the $1.83 billion in revenue it posted in the comparable period last year.

My take: Given the way the market looks today, I think the stock could take a hit. That being said, I do think this stock will move higher in 2009, and that we're nearing a decent entry point. On that note, another thing that caught my eye was some insider activity back in the latter part of August.
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos