One Simple Fact That Many Apple Inc. (AAPL) Investors Are Forgetting

The easiest way to achieve this transformation is to compute Q1 earnings into weekly averages. In Q1 FY2012, Apple earned close to 99 cents per week over a 14-week period. In Q1 FY2013, however, analysts expect the company to earn an average of $1.04 per week over a 13-week time frame.

Thus, we can actually see that Apple Inc. (NASDAQ:AAPL) is expected to see modest EPS growth near 5% this quarter, and when we adjust EPS estimates for a longer time frame, we can see that earnings estimates would eclipse $14.50 if the current fiscal Q1 was 14 weeks long.

These calculations are important to make, because it’s crucial for investors to understand the full scope of Apple’s upcoming earnings release, due for January 23, 2013.

Over the longer term, the sell-side expects the company to generate EPS growth of 19-20% a year over the next half-decade, above what’s expected of Google (15.7%) and Microsoft (9.6%). While this expansion is slowing down – Apple Inc. (NASDAQ:AAPL) averaged EPS growth of 62.2% a year over the past five years – it’s still better than the company’s closest competitors.

With that being said, these estimates obviously don’t take into account the effects that an Apple TV would have on the company’s bottom line, which could generate additional upside of 5-10% (see Apple TV Could Add $4.50 to EPS: Analyst).

Let us know how you’re trading Apple in the comments section below, and if you’re encouraged or discouraged by the company’s growth prospects. For more Apple Inc. (NASDAQ:AAPL) coverage, continue reading below:

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