) released its fiscal first-quarter earnings results after the
closing bell on Wednesday. While the company's profit was above
Wall Street consensus, revenues came in light. Apple also guided
for second-quarter revenue which is below current analysts'
For the first-quarter, the company reported net income of
$13.08 billion or $13.81 per share, compared to $13.06 billion or
$13.87 per share, in the year ago quarter. This compared to
analysts' consensus EPS estimates of $13.44.
Revenue was $54.51 billion versus $46.33 billion last year.
This barely missed Street consensus revenue estimates of $54.73
Looking ahead to the second-quarter, Apple said that it sees
revenue of between $41 billion and $43 billion. This is below
current consensus revenue estimates of $45.63 billion.
In the wake of the disappointing results, Apple shares have
plunged on Thursday. At last check, the stock was trading down
almost 12 percent to $453.57.
The hiccup from Apple is having a direct effect on the stocks
of some of the company's top suppliers. According to RBC Capital
analyst Doug Freedman, "Apple is one of the largest purchaser of
semiconductors, consuming 10% of world-wide semiconductor
The hardest hit stock in the wake of the results from the
company has been Cirrus Logic (NASDAQ:
), which Freedman estimates derives 72 percent of its revenue
from Apple. On Thursday, CRUS was trading down around 10 percent
to $26.94 late in the day.
Larger suppliers, including power management chip
manufacturers Skyworks Solutions (NASDAQ:
) and Avago Technologies (NASDAQ:
) fell in early trade but have recouped most of their losses.
Skyworks was last down around two percent while Avago had shed
roughly 1.50 percent.
Freedman estimated that large chip-maker Broadcom (NASDAQ:
) generates around 13 percent to 15 percent of its sales from
Apple. He put Qualcomm's (NASDAQ:
) exposure at 10 percent to 16 percent. Those stocks had lost
roughly two percent and one percent, respectively.
Small-cap name Peregrine Semiconductor (NASDAQ:
) was one of the hardest hit names on Thursday. The company,
which has a market cap of under $419 million, generates more than
half of its revenue from the iPhone according to estimates by
Charter Equity's Edward Snyder. The shares were down almost eight
percent in the last hour of trade on Thursday.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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