Street Disregarded Apple Slowdown, Was Overly Optimistic in Raising Estimates

Was Apple's decline really a decline? Global Equities Research is attempting to answer that question. Trip Chowdhry, the Managing Director of Equity Research, sent out an e-mail update on the matter. “During the 3Q'2011 results announcement, Apple AAPL guided 4Q'2011 Revenues of $25 Billion and EPS of $5.50 - and Apple announced 4Q'2011 revenues of $28.27 Billion and EPS of $7.05 - but seems the street was too over-optimistic in raising there estimates, while forgetting the fact that for almost 20 days in the announced 4Q'2011 quarter, Apple nusiness was very slow,” Chowdhry wrote. “So the Street not only disregarded the 20 days of slowdown in Apple's business, but over-compensated the fact that the 70 days of business will over come the 20 days of weakness - and pushed the estimates to $29 Billion in revenues, which was well above what [the] company guided for, which was $25 Billion.” Follow me @LouisBedigian