Canaccord: Apple Didn't Beat Every Expectation - Apple (NASDAQ:AAPL)

In a report published Tuesday, Canaccord Genuity analyst T. Michael Walkley commented that

Apple Inc.

AAPL

reported a strong second quarter results that for the most part were better than expected. However, the analyst detailed several aspects of Apple's business that fell short of expectations.

Exceeded Expectations:
iPhone Units And Selling Prices Walkley previously projected Apple will sell 58.0 million iPhone units in the quarter at an average selling price of $663. The Street consensus estimate was projecting 57.3 million iPhone units were sold at an average selling price of $654. Apple had sold 61.2 million iPhone units in the quarter at an average selling price of $665. Gross Margin Walkley estimated Apple will report a gross margin of 39.9 percent, an estimate that was slightly higher than the Street's estimate of 39.5 percent. Apple reported a gross margin of 40.8 percent. Operating Margin Walkley estimated Apple will report an operating margin of 30.4 percent, an estimate that was higher than the 29.7 percent the Street estimated. Apple reported an operating margin of 31.5 percent. Revenue, Earnings Per Share Walkley estimated Apple will earn $2.26 per share in the quarter on revenue of $57.509 billion. This compares to the Street's earnings per share estimate of $2.15 on revenue of $55.930 billion. Apple reported that it earned $2.33 in the quarter on revenue of $58.010 billion. Fell Short Of Estimates:
Mac Units, Selling Price Walkley estimated Apple will sell 4.6 million Mac units at a blended average selling price of $1,248. The Street's estimate was calling for 4.6 million Mac units at a blended average selling price of $1,255. Apple reported that it sold an in-line 4.6 million units but at a blended average selling price of $1,245.
Mixed Results:
iPad Units Miss, Selling Price Beats Walkley estimated Apple will sell 15.0 iPad units at an average selling price of $422 million. The Street's estimate was less conservative at 13.9 million units sold but at a higher average selling price of $428. Apple reported that it sold only 12.3 million units, but at an average selling price of $437. https://cdn1.benzinga.com/files/imagefield_thumbs/images/story/2012/aapl_4.jpg?1430224838

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