Rodman & Renshaw Maintains Market Outperform on Apple After Missing 4Q Expectations

Rodman & Renshaw has published a research report on Apple

after the company reported 4Q 2011 earnings that missed expectations. In the report, Rodman & Renshaw writes, "Apple (APPL, Market Outperform) reported fourth quarter 2011 with revenues up 39% Y/Y and down 1% Q/Q to $28.3 billion and net income of $6.62 billion ($7.05 per share), below consensus estimates of $29.7 billion/$7.38. Our estimates were at $30.1 billion /$7.03. While revenue shortfall was primarily due to anticipated lower iPhone shipments, iPad units came below expectations. Gross margins contracted 150 bps Q/Q to 40.3% due to lower iPhone volumes and decline in iPad ASP's (6% Q/Q). Operating margins declined 200 bps Q/Q to 30.8%. Cash and cash equivalents were at $9.8 billion." Rodman & Renshaw maintains its Market Outperform rating and $450 price target on Apple, which closed yesterday at $422.24.