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Expect Apple to 'Handily Beat' Estimates: Tech Analyst

Tech giant and iPhone manufacturer Apple is due to report fiscal fourth quarter earnings results after the bell on Monday and applied technology senior analyst Yair Reiner at Oppenheimer & Co. expects the company to beat Wall Street expectations.

“The company is doing very well from the consumer point of view,” Reiner told CNBC. “On the bottomline, in terms of EPS, we’re going to see them handily beating the Street’s estimates—largely because their gross margins continue to be very strong.”

While Wall Street analysts who follow Apple expect the company to turn in a gain of $1.42 on sales of $9.2 billion, according to a consensus from Thomson Reuters, Reiner expects the firm to report a gain of $1.50 on sales of $9.1 billion and has a $210 price target.

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Despite some minor issues with undershipping, Reiner said iPhones are helping the firm’s bottomline.

“And this quarter, they’ll also be helped by the strong Euro, which is going to give them more on the bottomline and also higher than usual software sales,” he said. "Apple has a lot more power in the market place. Whereas two years ago it had no choice but to negotiate exclusivity, within the next year, we’ll see [iPhones] on additional carriers in the U.S."

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Additionally, Reiner said the demand during Christmas season will be strong for iPhones and Macs.

“PC sales, both Apple and Microsoft , have seem to have rebounded from the lows—it seems like we’re up year to year and Apple is clearly gaining share both with consumers and more enterprises are finding ways to integrate Apple where they haven’t been able to do so in the past.”

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Disclosure:

Reiner’s firm Oppenheimer & Co. owns shares of Apple.

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