Re: Further proof that stock analysts are idiots
- From: TravelinMan <Nowhere@xxxxxxxxxxxx>
- Date: Wed, 12 Oct 2005 21:11:09 GMT
In article <1129150829.321394.152300@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,
"ed" <news@xxxxxxxxxxxxxxx> wrote:
> TravelinMan wrote:
> > Apple had by far the best quarter the've EVER had - and the stock drops
> > 11%.
> >
> > Now, I realize that if the results fall short of expectations, the stock
> > will drop. That's not surprising and is quite expected.
> >
> > What is unexpected is that the analysts actually EXPECTED the results to
> > be significantly better than they were. What did these idiots expect? A
> > 100% sales increase?
>
> apple had guidance for profits of $0.32 per share, but analysts thought
> that was overly cautious, and were expecting $0.37 per share. actual
> profits came in at $0.50 per share, but excluding benefits from some
> tax related issues, it would have been $0.38 per share. regarding the
> miss on ipod sales, apple stated that there was component shortages for
> the nano leading to it not being able to meet demand- if they had their
> supply chain in better order, they may have very well made
> expectations.
>
> overall, i'm not a big fan of analysts, but they seemed to have been
> pretty much right on with this one, so i'm not sure what you're
> bitching about.
Let's see:
Apple told them $0.32
The reported estimate was $0.37
Apple achieved $0.38 or $0.50, depending on how you counted it.
Yet the stock plummeted 11% because the analysts said it failed to meet
their expectations.
In what way do the actual results fail to meet expectations? (unless
your expectations are insanely stupid).
.
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