According to analysts at Morgan Stanley, recent financial filings by computer giant Apple, Inc. ( AAPL ) show trends that will lead to higher revenues in fiscal year 2013, despite increased competition and hard times keeping supply up to meet demand.
The analysts point to increased capital expenditures and off-balance sheet commitments in their 2013 revenue expectations for Apple.
Apple's 2012 capital expenditures show an estimated growth of +58% from 2011, and this growth is believed to increase the company's 2013 revenues. Capital expenditures are funds used by a company to acquire or upgrade physical assets that hopefully will lead to greater and more efficient production. Apple is expected to report nearly $200 billion worth of revenue in fiscal 2013, helped by capital expenditures of about $9.5 billion in 2012, up from $4 billion reported in 2011.
The firm's off-balance sheet commitments of about $16 billion in 2012 are an +88% increase from the $8.5 billion in off-balance sheet commitments in 2011. These commitments are estimated to generate about $235 billion worth of revenues in 2013. These off-balance sheet commitments mostly show materials and other capital expenditures that show the company's path to increase product development.
Morgan Stanley believes the increase in these expenditures will help play a roll toward bridging the gap between demand and supply. If Apple can accomplish this and continue to see high sales in its high priced products, it should be able to boost its 2013 revenues higher than most Wall Street estimates.
Apple shares were down $9.89, or -1.70%, in premarket trading on Wednesday.
Apple, Inc. ( AAPL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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