Apple Inc (NASDAQ:AAPL) has had a busy week. Yesterday, the company held its much-anticipated product release for the iPad Mini, while also announcing hot items like iBooks 3.0 and the Fusion Drive. In the time since the release however, shares of Apple are down close to three percentage points. Clearly, investors are taking a wait-and-see approach for the tech giant’s earnings tomorrow, which are heavily dependent on iPad and iPhone sales.
A few weeks ago, we told you how Apple Inc (NASDAQ:AAPL) could get another earnings record in the fourth quarter from the iPhone 5, but now, we’re going to cut to the chase.
Apple Inc (NASDAQ:AAPL)’s Q4 guidance rests at $34 billion in revenues and earnings of $7.65. If the company is able to hit these marks, it would mark growth rates of 20.1% and 8.5% on a year-over-year basis.
Interestingly, Wall Street is predicting that the company will hit a bit higher on both the revenue and earnings sides, predicting quarterly sales of $36.27 billion and an EPS of $8.91. To have such a discrepancy between actual guidance and analyst expectations isn’t rare, per say, but it is notable, because this is Apple Inc (NASDAQ:AAPL) we are talking about. Lately, any bit of negative news has absolutely bludgeoned this stock, and it’s no longer a “certainty” that we’ll see a $1,000 share price any time soon.
On the other side of the aisle, however, are some analysts that are saying quite frankly, that the fourth quarter isn’t important, due to Apple Inc (NASDAQ:AAPL)’s recently revamped product cycle. Mark Moskowitz of JP Morgan went as far as saying that “Apple can miss or beat. It does not matter.”
More importantly, ardent investors should be watching for any news on a potential deal with China Mobile Ltd. (NYSE:CHL), as Apple Inc (NASDAQ:AAPL) can access close to 700 million mobile subscribers if both sides can come to a mutual agreement. We’ve already covered this situation heavily, and view it as one of the most important catalysts that can vault shares of Apple Inc (NASDAQ:AAPL) back to a fairer valuation.
The hedge fund industry as a whole will be listening in on Apple Inc (NASDAQ:AAPL)’s Q4 conference call, as the stock is the top pick among billionaire investors.