Apple Slashes Holiday Earnings Estimates
Apple (NAS: AAPL) has reduced its guidance for its upcoming 1Q 2013, the company revealed in its press release announcing 4Q 2012 results. The iPhone and iPad purveyor now expects a significantly lower net profit figure of $11.75 in the upcoming quarter. This is $3.74, or 32%, lower than average analyst expectations of $15.49. It also falls short of the $13.87 that the company earned in its 1Q 2012.
Revenue is now anticipated to come in at $52 billion, a 6% drop from analyst predictions of $55 billion.Â Apple expects its gross margin will be 36%, the lowest figure in several years. Gross margin for 4Q 2012 was 40%.
The upcoming quarter is particularly crucial for a consumer electronics firm like Apple, as it comes during the sales-happy holiday season.
Apple CFO Peter Oppenheimer said the expected shortfall is due to higher costs related to the company's proliferation of new products, including the just-introduced iPad Mini. CEO Tim Cook said Apple was "unwilling to cut corners" in the production of such goods for the sake of short-term gain.
The cut in guidance will undoubtedly have a big impact on the performance of Apple's stock. By picking up a copy of our premium research report on Apple, you'll get an in-depth analysis on the company and receive ongoing guidance as key news hits -- as it always does with this firm. Claim your copy today by clicking here now.
The article Apple Slashes Holiday Earnings Estimates originally appeared on Fool.com.Eric Volkman has no positions in Apple. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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