--> AAPL shares are trading higher by 2% in pre-market trading.
Apple: Color on quarter
- Mizuho notes that AAPL intends to have iPhones available in 115 countries by the holiday season and it ended F4Q14 with below normal channel inventory. The firm's supply-side checks indicate Apple has the capability to ship 65-70 mln iPhones in the December quarter, which should help deliver upside. They believe management's outlook is based on unit shipments of 60-63 mln phones. AAPL should experience a material uptick in iPad sales from the new product launch but the category is likely to remain lackluster near-term. The firm raises its price target to $115 from $110. Buy Rating
- Cowen said better iPhone units/ASP so early in the launch plus a desire to build more channel inventory should add nice revenue ballast for a 1H:15 that they have always felt is under-modeled by the Street. iPad #s are likely to remain weak until 12.9" launch, but Pay and Watch create new angles to the narrative and allow investors to "dream" again on where iPhone (and maybe Apple Watch) units can go as consumers buy more hardware because of these new use cases. The firm raises its target to $113 from $110 Outperform Rating.
- RBC Capital Markets said AAPL printed material upside to sales and EPS in Sept-qtr driven by strong iPhone 6 sales in September. Furthermore, AAPL's guide for Dec-qtr was well ahead of expectations on sales and inline on gross-margins, which they think could end-up surprising investors on the upside. AAPL has seen gross-margins at or above the high-end of their guide for 6-quarters in a row. They think the magnitude of upside in Dec-qtr will be contingent on mix, f/x and improved yields of iPhone 6/6+ as demand continues to outpace supply. The firm raises its target to $115 from $114. Outperform Rating.
- Oppenheimer notes, the results were driven by stronger-than-expected iPhone and Mac sales. iPhone 6 and 6 Plus supply has been the strongest in iPhone history but are still in shortage thus far, while Mac NB saw strength during "back-to-school" sales and in international markets. They raise their FY15E revenues/EPS slightly from $208.1B/$7.31 to $208.7B/$7.36. Reiterate Outperform with $115 PT as they see the momentum building after the strong showing.
- Stiffel said that iPhone ship at 39.3 mln (+16% yr/yr, but w/ sell thru up an impressive 26% yr/yr), only slightly below their above consensus 39.6 mln est. (street: 37.4M). They note, Apple was skeptical that it could attain supply / demand balance in F1Q15 with current channel inventory levels below the targeted 4-6 week range They say iPad results were weak with 12.3M units falling below their 13.3M estimate, although Apple remains confident in iPad growth potential.