Apple /quotes/zigman/68270/quotes/nls/aapl AAPL -0.15% reports earnings on April 24 after the close. The consensus estimate is $10.05 for earnings and $36.73 billion for revenues. Of course, as usual, the breakdown of numbers by product category will drive the price of the Apple stock.
Apple stock price has lately been very volatile. The gurus have advanced several explanations. Such theories include Verizon /quotes/zigman/262341/quotes/nls/vz VZ +1.52% not selling as many iPhones as some expected, details of chips from Qualcomm /quotes/zigman/77257/quotes/nls/qcom QCOM -0.50% , controversy about the number of iPads sold in the quarter, and rumors of a smaller iPad with lower gross margins.
At The Arora Report , we have built up an enviable track record partly by following several sets of rigorous principles and rules. The following is the set of principles and rules we review prior to the earnings release of every stock in our portfolio:
1. Nobody knows with certainty what is going to happen next.
Analysts can be diligent and knowledgeable, but, in the end, it is a guess.
Apple is a highly secretive company. There is no hard reliable data available prior to the earnings. Everything that you read is mere speculation. In some cases, the information is somewhat informed. An example is the concern that carriers such as AT&T /quotes/zigman/398198/quotes/nls/t T +0.39% will cut subsidies that they offer for iPhone. In other cases, the speculation is no more than the figment of someone’s imagination.
2. Figure out ownership popularity.
If a stock is under owned, there is a large pool of potential buyers who may buy on a positive earnings surprise. If a stock is under-owned and earnings are negative, there is still a pool of potential investors willing to buy at lower prices. …Read more at MarketWatch
