- ThinkEquity notes that with the Leopard launch (Mac OS X v 10.5) just around the corner, they have revisited their Apple (NASDAQ:AAPL) revenue and earnings power estimates in light of the ever- larger Mac OS X user base. Firm likes how Vista has established a "hardware upgrade mindset" among PC users, and they expect Apple CPU unit shipments to benefit from Vista tailwinds, the release of Leopard, and a CS3 pro catalyst. They believe software is core to further share gains and margin expansion for Apple, and encourage investors to remain focused with a "Look At The Core."
Think's new FY07 revenue estimate is $24.4 billion or 26.3% y/y growth (up from 22.3% y/y growth). New FY07 EPS estimate is $3.24 or 43% y/y growth (up from 35% y/y growth). Firm expects revenue growth to accelerate in FY08 thanks to the iPhone. Until they better understand the earnings power of this new offering, they are modeling a 170 basis point
decrease in gross margins, which could prove conservative. Maintains Buy and $120 tgt.
Notablecalls: Not actionable but good to know category. Think's ests for FY07 are now pretty much in-line with consensus.
Think's new FY07 revenue estimate is $24.4 billion or 26.3% y/y growth (up from 22.3% y/y growth). New FY07 EPS estimate is $3.24 or 43% y/y growth (up from 35% y/y growth). Firm expects revenue growth to accelerate in FY08 thanks to the iPhone. Until they better understand the earnings power of this new offering, they are modeling a 170 basis point
decrease in gross margins, which could prove conservative. Maintains Buy and $120 tgt.
Notablecalls: Not actionable but good to know category. Think's ests for FY07 are now pretty much in-line with consensus.
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