Anyone interested in the corporate Apple phenomenon will be captivated by Andy M. Zaky's in-depth analysis of current and future performance published today on appleinsider.com. Zaky, who already has an impressive track record in forecasting Apple results, is convinced that the company is entering a "golden age" in 2010 with a staggering 70 percent earnings growth. Based on his analysis he is projecting $15.51 earnings per share on an "explosive" $63.4 billion revenue in 2010.
In the four years he's been following Apple he has seen the company grow from a mid-sized tech stock to become the second largest corporation in the USA in terms of market capitalisation, with consistent earnings growth of well over 50 percent per year. Apple is now larger than Microsoft, Google, Cisco, Hewlett Packard and Intel yet still enjoys the sort of growth rate of small-cap technical stocks. He maintains that if present levels of growth continue into next year Apple will surpass Exxon to become the largest corporation in America.
This is a company with current cash reserves of $41 billion and a staggering record of new-product announcements. iPad has already been a magnificent success and sales of two million per month are possible; and the iPhone 4 is in very short supply and will surely boost revenues dramatically between now and the end of the year. And news earlier this week that Mac sales were still surging forward, despite the arrival of the iPad, shows that traditional revenues are holding up well. Apple stock, which closed today at $256 is said by many commentators to be heading towards $350 a share by mid 2011.
(Disclosure: MacFilos holds stock in Apple, Inc.)