Friday, 25 January 2013

Apple: highest profits but share drops 12%


Some quick facts on Apple and its earnings release yesterday:

  • Apple's calendar year 2012 profits were the highest of any company, ever
  • Its Q1 2013 earnings were the 4th largest quarterly profit of any company in history
  • Apple trades at 10.2 times trailing earnings, less than 9 times future forecasted earings
  • Apple has USD 137 Billion cash, about RM 420 Billion, Apple alone could almost settle the whole of the Malaysian debt
  • Excluding cash (USD 145 per share), Apple is trading at 7 times earnings
  • It's share has dropped from a high of 700 to 450, a drop of 36%
  • But ..... critics will point out that Apple's margins are falling, and they are correct

Apple's history in launching innovative products:

2001: iPod
2004: iPod mini
2007: iPhone
2010: iPad
2013: Will we see another invention? Capital expenditure for R&D is up.

The above written with the help of an article from SeekingAlpha:

"In Defense Of Apple: Battling The Mounting Hysteria" by Helix Investment Management.

The share price is exactly back where it was one year ago:



2 comments:

  1. I don't own an iPhone. Simply because i feel that their screen is too small for me. They is also too much hype about this company. Here is more reasons why, http://boombustblog.com/

    ReplyDelete
  2. Thanks for the link, I used to follow Reggie, but lost the link, I think he also changed it.

    ReplyDelete