Apple Expected To Announce Blowout Earnings North Of $24 Billion!

In preparation for Apple Inc’s 2nd Quarter (Q2-2011) earnings announcement due on April 20th, top Wall Street Investment Bank J.P. Morgan has upped it’s projections for Apple’s earning through 2012, mainly due to the expected continued growth from iPhone and iPad sales.

J.P. Morgan analyst Mark Moskowitz sent a note to investors early today with revised estimates, reiterating the firm’s Dec. 2011 share price target of $450 with the Overweight rating of Apple. Moskowitz also raised his projections for Apple’s EPS for the Q2 2011 to $5.39, up from $5.21 and increased his revenue estimate for the March quarter from $23.83 billion to $24.42 billion.

Moskowitz asserted that the Street consensus for the quarter stands at $23.26 billion in revenue and $5.38 EPS.

Moskowitz referenced a note from earlier this week where he suggested that the CDMA iPhone could represent a $9 billion opportunity for Apple in 2012 , adding that non-Verizon CDMA are expected to play an important part in the sustained growth of the iPhone.

Since Apple relies heavily on certain iPad, iPhone parts manufactured in Japan, it’s supply chain is no doubt going to be affected as a result of the Japan earthquake and tsunami in March. So Moskowitz warned that Apple’s gross margins will likely decline in the near to mid-term and could be further exacerbated by the growing portion of Apple’s revenue coming from iPad sales, since the iPad’s profit margins are generally lower than Apple’s other product lines.

apple steve jobs money printing earnings photo pic

Although Moskowitz cautiously lowered iPad estimates for the March quarter from 6 million to 5.4 million over concerns that the iPad 2 launch resulted in a ” temporary stall-out ” in shipments , the analyst asserted that the issue was “timing related and not structural.”

Moskowitz also revised Mac unit estimates slightly upwards for the quarter , projecting a 32 percent year -over-year growth for a total of 3.89 million Macs sold , compared to a previous estimate of 3.85 million.

The analyst lowered unit estimates for the March quarter from 9.6 million to 9.1 million , while noting that growth from the Mac , iPhone and iPad lines should ” more than offset the chronic decline of the iPod over time.

By way of comparison , analyst Mike Abramsky over at RBC Capital Markets projects Apple selling 7 million iPads , 17 million iPhones and 3.6 million Macs in the second quarter of fiscal 2011.

How accurate are these predictions? We’ll know soon, at Apple’s quarterly earnings calls (2nd fiscal quarter of 2011) scheduled for April 20 (next Wednesday). The call will begin after the market closes, at 5 p.m. Eastern time, 2 p.m. Pacific time. Stay tuned!

[story via  josh ong at apple insider, photo via ]

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