Apple (AAPL) will beat Street estimates on the back of stronger than expected Mac and iPhone sales, says Piper Jaffray’s Gene Munster in a note this morning.
Munster is raising his estimates for the September quarter. He expects earnings per share to be $1.37 on $9.1 billion in revenue. His previous estimates were $1.24 on $8.9 billion.
He expects Mac unit sales to 2.8 million units, and iPhone sales to be 7.5 million units. Gross margins are expected to be 36% which is just off the 36.4% average over the last two quarters.
Here’s what Munster sees in each segment:
- Mac: Year over year NPD growth rates trending positively, indicating a 7% gain in unit sales, equating to 2.8 million units sold. The Street only expects 5% growth.
- iPhone: Munster’s checks indicate demand is outstripping supply. With a strong level of demand Munster sees iPhone units at 7.5 million.
- iPod: Munster sees iPod sales down 10% year over year, but says the street is factoring in a 14% dip.
- December guidance: Expect the typical low-balling from Apple. Over the last 12 quarters, Apple has guided revenue 4% below expectations. Munster sees them guiding EPS of $1.68 versus the Street’s expectation of $1.91 and revenue of $10.98 billion versus the Street’s $11.44 billion.
The stock is rated overweight, and Munster believes shares will move higher in the next three months. He has a $235 price target.
Here’s the key metrics: