Apple (Nasdaq:AAPL) Gets Review from Canaccord

Apple (Nasdaq:AAPL) continues to be viewed positively by Canaccord Genuity after their latest blowout quarterly report, which should only be a foundation for further success in 2011.

Canaccord says, "Apple posted solid fiscal Q1 (December) results, driven by continued strong sales across all product lines during the holiday shopping season. Canaccord Genuity Technology Analyst Michael Walkley notes that holiday sales of the iPad were particularly strong (7.3 million versus our 6.5 million estimate), and the iPod (19.5 million versus our 15.4 million), iPhone (16.2 million versus our 16.8 million) and Macs (4.1 million versus our 4.2 million) were all equally robust. Apple reported EPS of $6.43, well above Walkley’s $5.31 estimate and consensus of $5.37. Management guided sales of $22 billion and EPS of $4.90 for Q2/11, above Canaccord’s $21.1 billion/$4.28 estimates. Walkley anticipates solid longer-term trends for Apple in C2011 with catalysts including the CDMA iPhone launch at Verizon (NYSE: VZ) and potential announcements of iPad 2 and iPhone5 in C2011. If the rumours are to be true, Apple has also not given up on releasing a white iPhone 4. Photos leaked off the retail inventory system of Best Buy (NYSE: BBY) show both the 16 GB and 32 GB white iPhone 4 models with an in- stock date of February 27. If the white iPhone 4 does indeed launch in February, it would be 8 months after the iPhone 4 first went on sale in the U.S. But it would also be sooner than the most recent release date provided by Apple, when it delayed the white iPhone 4 yet again in October. All things considered, Walkley remains very bullish on Apple. He believe Apple’s industry-leading software ecosystem (over 120 million installed base of iOS device sales) and its leading hardware expertise will lead to a strong multi-year product cycle for its key products. In fact, based on Apple’s strong results and solid sales guidance for its March quarter, combined with expectations of strong longer-term trends for iPhone and iPad sales (with refreshes of both products expected in the next two quarters), Walkley anticipates better earnings growth longer term for Apple versus Canaccord's coverage universe."

Apple (AAPL) closed Thursday at $332.68, down $6.16, or 1.82 percent.