Tech Stock Strategist: Apple Will Probably Trade On The Guidance

Quantum Trading Strategies CIO and tech stock strategist Sean Udall spoke to Benzinga during Monday's #PreMarket Prep to discuss Apple Inc.'s AAPL upcoming earnings.

Udall noted that the investment community is “hyper focused” on Apple and for good reason. The strategist stated that if Apple were coming 60 days ago, it would be a “shockingly-stunningly good quarter” given the fact that many analysts' estimates on earnings per share were $0.20 to $0.30 lower at that time than they are now.

Since then, many analysts raised their earnings per share expectations. Udall suggests that Apple could have easily beaten expectations “had analysts not gone kind of crazy with all the estimate revisions.”

Nevertheless, Udall believes Apple “might be able to beat” earnings per share estimates, but the “stock will probably not trade on how good the current quarter is, it will trade on the [guidance].”

Udall expects Apple to issue an in-line to slightly higher guidance and by doing so “people might be surprised how well the stock might work.”

Check out the full interview in the video below:

Don’t forget to tune in to Benzinga’s #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for a live, interactive morning show with veteran traders and featured finance industry experts ready to answer your questions for the trading day.