) is expected to beat expectations when it reports first quarter
results on Jan 23, 2013 after the closing bell.
Why a Likely Positive Surprise?
Our proven model shows that Apple is likely to beat earnings
in the first quarter of 2013 because it has the appropriate
Zacks Earnings ESP
and Zacks Rank.
Expected Surprise Prediction or ESP represents the difference
between the Most Accurate Estimate and the Zacks Consensus
Estimate. Currently, the Most Accurate Estimate and the Zacks
Consensus Estimate for Apple stand at $13.92 and $13.47,
respectively. This equates to a +3.34% ESP for Apple.
Zacks Rank #3 (Hold):
Note that Zacks #1, #2 and #3 Ranked stocks have a significantly
higher chance of beating earnings.
These two factors make us reasonably confident about a
positive earnings beat on Jan 23.
What is Driving the Better than Expected Earnings?
We expect strong performance from iPhone 5 combined with the
launch of the new iPad mini, iPad 4 and iMac product lines to
drive earnings in the first quarter.
Apple launched iPhone 5 in China, South Korea and 50
additional countries in the first quarter. Apple sold 2 million
iPhones in China in the very first weekend. In the domestic
) also reported continued strong demand for iPhone 5.
Apple's new iPad mini and iPad 4 received overwhelming
response, as the company sold three million iPads in just three
days of launch. Apple also launched the iTunes store in Russia,
Turkey, India, South Africa and 52 additional countries in the
Other Stocks to Consider
Apple is not the only firm looking up this earnings season. We
also see likely earnings beats coming from these two industry
), which has a Zacks Earnings ESP of +20.7% and Zacks Rank #3
), which has a Zacks Earnings ESP of +9.1% and Zacks Rank #2
APPLE INC (AAPL): Free Stock Analysis Report
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