Apple Inc. (AAPL) is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. The Company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Apple Inc. is headquartered in Cupertino, California.
There were a lot of questions about Apple's future following the death of founder and CEO Steve Jobs, but replacement Tim Cook did a lot to bury doubts once and for all with the most recent earnings report. Apple posted the greatest profit of any company in history yesterday. The Company posted record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. These results compare to revenue of $57.6 billion and net profit of $13.1 billion, or $2.07 per diluted share, in the year-ago quarter. Gross margin was 39.9 percent compared to 37.9 percent in the year-ago quarter. International sales accounted for 65 percent of the quarter’s revenue.
The tech juggernauts profit of $18 billion dollars handily beat the @ $16 billion prior record posted by Exxon/Mobil back in 2012. The latest iPhones led to the staggering number, with 74.5 MILLION of the devices sold for the quarter. The company's cash reserves now approach $180 BILLION. That's enough cash to buy major competitors outright--if they wanted.
Buyers purchased large quantities of the bigger, more expensive, and more profitable iPhone 6 Plus, and that really boosted the company's bottom line. Sales of iPads were less impressive, but that didn't matter due to the huge demand for the latest iPhone models during the Christmas season. Analysts note that the phones were also wildly popular in China, a fact which bodes well for the future. Since the death of Steve Jobs, Cook has essentially increased quarterly profits 300%. He has also helped the company by getting rid of management figures who were apostles of Jobs, but perhaps not as effective as they should have been.
ValuEngine continues its BUY recommendation on AAPL for 2015-01-27. Based on the information we have gathered and our resulting research, we feel that AAPL has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.
Below is today's data on AAPL:
|
ValuEngine Forecast |
||
|
Target |
Expected |
|
|---|---|---|
|
1-Month |
109.72 | 0.53% |
|
3-Month |
110.67 | 1.40% |
|
6-Month |
111.86 | 2.49% |
|
1-Year |
116.14 | 6.42% |
|
2-Year |
132.18 | 21.11% |
|
3-Year |
69.42 | -36.39% |
|
Valuation & Rankings |
|||
|
Valuation |
8.21% overvalued |
Valuation Rank(?) |
 32 |
|
1-M Forecast Return |
0.53% |
1-M Forecast Return Rank |
86 |
|
12-M Return |
38.78% |
Momentum Rank(?) |
89 |
|
Sharpe Ratio |
1.04 |
Sharpe Ratio Rank(?) |
96 |
|
5-Y Avg Annual Return |
25.98% |
5-Y Avg Annual Rtn Rank |
93 |
|
Volatility |
25.02% |
Volatility Rank(?) |
72 |
|
Expected EPS Growth |
17.53% |
EPS Growth Rank(?) |
52 |
|
Market Cap (billions) |
640.09 |
Size Rank |
100 |
|
Trailing P/E Ratio |
15.68 |
Trailing P/E Rank(?) |
73 |
|
Forward P/E Ratio |
13.34 |
Forward P/E Ratio Rank |
67 |
|
PEG Ratio |
0.89 |
PEG Ratio Rank |
47 |
|
Price/Sales |
3.50 |
Price/Sales Rank(?) |
27 |
|
Market/Book |
6.23 |
Market/Book Rank(?) |
20 |
|
Beta |
0.89 |
Beta Rank |
58 |
|
Alpha |
0.22 |
Alpha Rank |
88 |
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