UBS on Apple (NASDAQ:AAPL) Before Earnings Report

As Apple (NASDAQ:AAPL) gets close to reporting earnings, UBS commented on what the believe we'll hear on Tuesday. They see Apple reporting earnings of $5.40 on revenue of $24.5 billion.

UBS 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. Looking forward, CDMA iPhone mix should help gross margins, somewhat offset by iPad2 in FY3Q, but expect mix to improve with iPhone."

UBS also increased their full year 2011 EPS estimates from $19.42 to $20.08 and revenue estimates from $91.5 billion to $93.7 billion.

Of the 49 analysts covering Apple, 44 have a Buy rating on Apple and 5 a Neutral rating.

UBS maintains a "Buy" rating on Apple, which closed Friday at $348.48, gaining $2.80, or 0.81 percent. UBS boosted their price target on Apple from $365 to $415.