wrong. Heading into tonight’s quarterly report, Apple is trading under $430 a share, the new products haven’t arrived, and investors are convinced the company is incapable of doing much of anything — at least under current management.
Analysts expect Apple to report $7.31 per share on revenues of $35.1 billion compared to $9.32 per share on $35 billion in the same quarter last year. Scott Kessler of S&P Capital IQ has a Strong Buyon Apple with a $550 price target. In the attached clip Kessler says he wants to see two things from Apple tonight.
The first is that the company is getting a grip on those collapsing net margins. “If they indicate that gross margins won’t deteriorate much further from the June quarter to the September quarter, I think that would be construed as a positive,” Kessler offers, doing a nice job illustrating just how badly Apple’s reputation and operations have been tarnished over the last year.
The second is regarding product release methods and dates. If there’s a defining characteristic of CEO Tim Cook’s tenure at Apple — other than the falling stock price — it’s the company’s coquettish approach to new product releases. Grown-up companies announce product release dates and are judged on their ability to meet those schedules by delivering quality product.
You can see the full “Breakout” segment below:
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