Apple (AAPL) Extends Underwhelming Earnings Start

By
A A A

aapl Apple's (Nasdaq: AAPL) disappointing earnings yesterday were the latest in what has become a disturbing trend this earnings season.

While the world's largest company didn't technically fall short of earnings estimates, its iPhone sales underwhelmed. The 51 million iPhones Apple sold over the holidays, while a record, were still 4 million shy of consensus analyst expectations. That was enough to send Apple shares plummeting after hours. The stock opened Tuesday trading down more than 8%, and is threatening to dip below $500 a share for the first time since October.

AAPL isn't the only stock that has suffered after reporting Q4 earnings over the last month.

According to FactSet , only 68% of S&P 500 companies have beaten earnings expectations so far this earnings season. That's below the one-year average of 71% and even further below the four-year average of 73%.

Only about a quarter of the S&P companies have reported earnings thus far, so it's still too early to make any sweeping judgments. But holiday earnings aren't exactly off to a booming start. And right now, it's hurting the stock market.

Since Alcoa ( AA ) reported lackluster earnings on Jan. 9, stocks have fallen more than 3%. That's the biggest drop-off on Wall Street since late September.

Of course, there have been a number of mini pullbacks over the past year, and each time stocks have bounced back and risen higher than ever before. Whether that happens this time may depend on if earnings can improve over the next few weeks.

This week alone could be rather revealing. AAPL was merely the first of several blue-chip stocks set to report Q4 results. Four of the 10 richest U.S. companies by market cap report earnings this week, including the three largest companies.

Here's what's on tap the rest of the week:

Tuesday (after hours)

  • AT&T ( T )
  • Yahoo! (Nasdaq: YHOO)

Wednesday

Thursday

  • Amazon (Nasdaq: AMZN)
  • Chipotle ( CMG )
  • Conoco Phillips ( COP )
  • Exxon ( XOM )
  • Google (Nasdaq: GOOG)
  • United Parcel Service (UPS)
  • Visa (V)

Friday

  • Chevron (CVX)
  • MasterCard (MA)

The One Stock to Own in 2014 - The Year Mobile Takes Over

On Dec. 31, something incredible happened. For the first time in history, the majority of Internet traffic originated from NOT from PCs or desktops - but from mobile devices including smartphones and tablets. We're never going back. Mobile is taking over. And even though the biggest player in mobile, Apple, is selling over 200 million iPhones this year alone… here at Wyatt Research, we're recommending the one company no one is taking about. The one reaping massive profits each time a new Apple or Samsung smartphone is activated. In fact, as mobile data usage explodes in the year ahead, its stock is set to soar! Shares are already on the move. So, before this stock moves any higher, read our latest report for all the details: Click here for the full story .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AA , T , CMG , COP , XOM

Wyatt Investment Research

Wyatt Investment Research

More from Wyatt Investment Research:

Related Videos

How to Fire Your Adviser
How to Fire Your Adviser            

Stocks

Referenced

Most Active by Volume

13,806,120
  • $100.97 ▲ 0.11%
12,260,754
  • $16.76 ▲ 0.30%
12,207,543
  • $42.575 ▼ 0.32%
11,719,152
  • $17.89 ▲ 2.17%
10,414,320
  • $16.27 ▲ 0.68%
8,642,601
  • $33 ▼ 16.12%
8,381,060
  • $46.60 ▼ 0.34%
7,965,934
  • $44.98 ▲ 8.62%
As of 9/17/2014, 10:38 AM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com