Wells Fargo Securities Reiterates Outperform Rating on Apple Following Strong Q4 Revenues/EPS

In a report published Tuesday, Wells Fargo Securities analyst Maynard Um reiterated an Outperform rating on

. In the report, Wells Fargo Securities noted, “Q4 revenues and non GAAP EPS of $37.5B/$8.26 were above our and consensus expectations of $36.8B/$7.96. Gross margins of 37.0% were 7bps better than our estimates. Strong iPhone demand from developing markets as well as the U.S. helped drive results. Demand for all iPhone models grew with the 4S positioned as the entry level offering. AAPL guided FQ1 2014 revenues between $55-58B (Wells Fargo: $58B; Consensus: $55.7B) with gross margin of 36.5-37.5%, Operating Expense of $4.4-4.5B, OCIE of $200MM and a tax rate of 26.25%--implying an EPS range of $12.98-14.27 (prior Wells Fargo: $13.55; prior Consensus: $14.10). We raise our FQ1 2014 EPS estimate to $14.62 from $13.55 and adjust our 2014 EPS to $44.72 from $43.42.” Apple closed on Monday at $529.88.