Thursday, January 13, 2011

Apple (NASDAQ:AAPL) Should Have Extraordinary Q1 Says UBS

First quarter results for Apple (NASDAQ:AAPL) should be extremely strong, according to UBS (NYSE:UBS).

UBS analyst Maynard Um said, "Though we believe this would normally result in lower overall Mac gross mgn, potential warranty accrual reversals (90bps impact last qtr), component pricing tailwinds, & iPad cost improvements should more than offset mix shift." he said, referring to discounting on the MacBook Air to drive sales.

UBS raised first quarter EPS estimates from $5.14 to $5.40 (consensus $5.31) and first quarter revenues estimates from $23.9 billion to $24.5 billion (consensus $24.2 billion). They also raised full year 2011 EPS estimates from $19.42 to $20.08 and revenue estimates from $91.5 billion to $93.7 billion.

Apple was trading at $345.94, up $1.52, or 0.44 percent, as of 1:06 PM EST. UBS raised their price target on Apple from $365 to $415, while maintaining their "Buy" rating on them.

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