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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Mike Devour who wrote (24897)	5/20/1999 4:33:00 PM
From: Doughboy	Respond to of 213176

Here's the CBS Marketwatch article on the Analyst conference. Analysts offer mixed view after Apple huddle PC maker 'comfortable' with third quarter, IMac sales By Janet Haney, CBS MarketWatch Last Update: 4:25 PM ET May 20, 1999 Movers & Shakers CUPERTINO, Calif. (CBS.MW) -- Analysts had mixed reviews Thursday after Apple Computer's Wednesday meeting with industry experts at the company's headquarters in Cupertino, Calif. In a research note, PaineWebber said it found "no significant change in Apple's strategy" as a result of the meeting. Analyst Don Young said Apple commented that it will continue to focus on its consumer market. Young also said Apple (AAPL: news, msgs) gave no details into its portable product IBook, which the security firm expected would already be shipping. The analysts maintained their "neutral" rating on the company, and added that the "long-term outlook for the platform is unclear." Yet, Dan Niles and Alex Mou, analysts at BancBoston Robertson Stephens, increased their profit estimates on the company from $2.68 to $2.75 a share for 1999 and from $2.85 to $2.86 a share for 2000. First Call estimates earnings of $2.77 and $2.84 a share, respectively. The analysts also said, "Given its consistent, focused product strategy, faster product cycle, improving visibility and strong execution, Apple's valuation appears attractive." BancBoston reiterated its "long-term attractive" rating on the company. Meanwhile, Hambrecht & Quist analyst Walter Winnitzki said, "Apple has successfully repositioned its product marketing strategy (primarily with its IMac product) away from the operating system to the Internet to drive new first-time users to the company." But, Winnitzki added, "the valuation of the shares is not compelling relative to earnings and the growth in earnings." He maintained his 1999 estimate of $2.76 and his "market perform" rating. Apple shares were down 2 11/16 to 42 1/2. Competitors Hewlett-Packard (HWP: news, msgs), Dell (DELL: news, msgs) and IBM (IBM: news, msgs) have recently made a push toward an increased Internet audience. Apple announced a similar move last year. Past and present Niles and Mou said Apple's management is "confident that the June quarter is on track," and said it's comfortable with the third-quarter estimate. The First Call Corp. third-quarter prediction is 63 cents a share. The analysts said Apple "continues to see strong demand for IMacs in third quarter." Highlights in the third-quarter, according to Niles and Mou, include Apple's release of QuickTime 4.0 beta version and they added that, "We believe Apple's Internet-centric software portfolio roadmap look promising." On April 14, Apple reported its second-quarter earnings and booked its sixth consecutive profitable quarter with a profit of 60 cents a share, up from 38 cents in the same quarter last year. Analysts expected the company to earn 57 cents a share. Sales rose 9 percent to $1.53 billion on healthy sales of IMacs and Apple's G3 desktop product. See full story. In a conference call following the earnings release, Apple CFO Fred Anderson said overall sales for the third quarter will be higher than the $1.53 billion the company posted in the second quarter.