Wednesday, July 20, 2011

Analysts as useless slugs

Apple (not Computer) once again played demolition derby with all predictions of their fiscal results by posting 3rd quarter results of $7.31 billion in profit on $28.57 billion in sales and $7.79 earning per share (EPS). The only hope of balancing our federal budget is Apple's taxes. This is the 1,144th time Apple has out performed all predictions especially their own guidance (which was a ludicrous $23 billion in revenue and $5.03 EPS).

I typically listen to Apple's Earnings Conference Calls as Peter Oppenheimer, Apple's CFO, and the usual cast of characters play hide-and-seek with the analysts. By the third call/question I am bored silly, but the same thing goes on quarter after quarter. If I were an analyst, my question would be:

Congratulations Peter on a great quarter! (Years ago this was the way they started, but I guess they got bored with that.) So, Peter, for the 1,144th straight time you severely underestimated your revenue and EPS. As a matter of fact even though your department had all the financial information, your estimate was worse than any analyst and we are idiots, as you can tell by the questions this afternoon. My question is, 'Who is responsible for your guidance and why haven't they been fired?'

At least you might get a laugh which is more than what they get now.

No comments: