There was a lot on noise made the day that Apple surpassed Microsoft in market cap but that will be nothing compared to the point when Apple surpasses them revenue wise.
As Andy M. Zaky writes at Fortune
Apple will report second quarter earnings on Tuesday, and Microsoft will follow on Thursday. Though Apple still has a ways to go to compete with Microsoft in terms of net income due to Microsoft’s untouchable operating margin, many will be surprised to discover that Apple’s revenues are close to surpassing Microsoft’s. If it doesn’t happen this week, it will almost certainly come in the next quarterly announcement.
It’s important to step back and examine just how close each of these companies really are in terms of revenue and earnings. Analysts polled by Thomson Reuters expect Apple to report approximately $2.85 billion in net income ($3.07 in EPS) on about $14.62 billion in revenue when it releases results after the bell on Tuesday.
Yet, it’s well known that Apple regularly beats consensus estimates by quite a large margin and that actual results will come in well above the consensus.
[....]
Microsoft, on the other hand, is expected to earn $4.1 billion in net income ($0.46 in EPS) on $15.26 billion in revenue when it releases results on Thursday – just a hair above Muller’s revenue estimates for Apple. And while Microsoft regularly reports upside surprises itself, the gap between consensus estimates and Microsoft’s actual results is nowhere near as wide as it is with Apple’s results.
While Apple, and specifically Steve Jobs, should be congratulated for growing the company as well as they have, one has to wonder, at what point will the shareholders and executive boardroom say enough is enough.
Sure there are many points of failure within the company, as well as some great successes, but in the end the financial viability of a company comes to rest on the CEO, in this case Steve Ballmer.
At what point is he going to be held accountable?
Updated: Digital Daily just posted the news about Apple’s 3Q earnings:
Because Apple has once again obliterated investor expectations. Posting third quarter earnings after the bell Tuesday, the company reported earnings per share of $3.51 on revenues of $15.7 billion.
It will be interesting to see Microsoft’s 3Q earning tomorrow.
Related posts:
