SaxoTV

Tuesday’s stocks to watch as Apple sets the tone

335 views
October 21, 2014 appl, apple, apple competition, apple devices, apple direction, apple earnings, apple earnings per share, apple earnings q4, apple earnings report, apple emerging markets, apple event, apple ipad, apple iphone, apple new strategy, apple news, apple phone, apple q4, apple results, apple revenue, apple sales, apple share price, apple share prices, apple shares, apple stock, apple store, apple strategy, apple tim cook, coca cola earnings, coke stock, equities, equities saxo, equities strength, equities trading, equity, equity analyst, equity market, equity market 2014, equity markets, equity portfolio, equity strategy, equity trading, mcdonalds, mcdonalds stock, saxo bank, saxo bank saxo tv, saxo bank trading, saxo bank trading floor, saxo bank tradingfloor.com, saxo tv, saxo tv saxo bank, saxo tv trades, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, stock, stock market, stock markets, stock pick, stock picks, stock price, stock prices, stock trading, stock trading 2014, stock tradings, stocks, stocks markets, stocks to watch, trade, trade idea, trading, trading idea, trading tips, tradingfloor, tradingfloor saxo bank, tradingfloor saxo tv, tradingfloor.com, tradingfloor.com insights, tradingfloor.com saxo tv, tradingfloor.com trade ideas, verizon wirless stock, verizone earnings, yahoo earnings, yahoo stock

It's another big day for US corporate earnings with Yahoo, McDonalds and Verizon among many preparing to open their books. But it was Apple that set the tone on Monday.  Its shares rallied strongly in afer-hours trading after its fourth-quarter earnings beat analysts’ estimates. The company revealed USD 42.1 billion in revenue and USD 8.5 billion in net income. Brian Colello, Senior Equity Analyst at Morningstar Research provides a detailed overview of the company’s earnings data as well his long-term outlook for the company’s stock. 


Colello notes that Apple had a “really great quarter on the product front,” with 39.3 million iPhones sold in the last quarter. Revenue from iPhone sales increased 21 percent, Mac sales were up 18 percent, and App Store sales increased 36% compared with the same quarter last year. Sales of the iPad were down 2.05 million from the same period a year ago, but Tim Cook, Apple’s CEO, addressed this concern in a conference stating that 237 million iPads have been sold in almost 4 years.  

The potential growth within emerging markets has Colello believing that there is still long-term value to be gained from the company’s stock. Sales for products like the iPhone 6 and new iPads are expected to grow during Q1, as the holiday shopping season approaches. Apple’s customer’s propensity to own multiple Apple devices has wide-moat for the brand, decreasing the likelihood that consumers will shift to competitors.