CHART OF THE DAY: Apple's Guidance Game

button more charts
button chart prev
button chart next

Why does Apple (AAPL) always “beat expectations?” Because it sets the bar so low it could fall over it.

Yesterday, for example, Apple reported a $1.33 per share profit on $8.16 billion of revenue for its March quarter. That’s 40% more profit per share and 5% more revenue than the company projected in late January. Fortunately, Apple doesn’t keep you guessing about what it says it will deliver and what it’s actual expectations are — because the lowballing is so consistent that you can just do the maths (add about 35% to 40% to the EPS).

No wonder Piper Jaffray analyst Gene Munster called Apple’s June quarter guidance “comically conservative” on CNBC this morning.



Follow the Chart Of The Day on Twitter:

Get This Delivered To Your Inbox
You can get this dropped in your inbox every afternoon as The Chart Of The Day. It’s a simple. It’s convenient. It’s free. All we need is your email address (though we’d love your name and state, too, if you’re willing to share it).  Sign up below!


First Name

Last Name


NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at