AAPL reports Q1 EPS $1.76 vs. consensus of $1.62 - Beat Estimates
AAPL reports Q1 revenue $9.6B vs. consensus of $9.47B - Beat Estimates

“We’re thrilled to report our best quarter ever, with the highest revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO. “We have an incredibly strong new product pipeline for 2008, starting with MacBook Air, Mac Pro and iTunes Movie Rentals in the first two weeks.”

“Apple’s revenue grew 35 percent year-over-year to $9.6 billion, an increase of almost $2.5 billion over the previous December quarter’s record-breaking results,” said Peter Oppenheimer, Apple’s CFO. “Our strong results produced cash flow from operations of over $2.7 billion during the quarter, yielding an ending cash balance of over $18.4 billion. Looking ahead to the second quarter of fiscal 2008, we expect revenue of about $6.8 billion and earnings per diluted share of about $.94.”

So why is Apple trading down $17.63 (at $138.01) from today’s market close of $155.64?

AAPL sees Q2 EPS about 94c vs. consensus of $1.09 - Decreased Guidance
AAPL sees Q2 revenue about $6.8B vs. consensus of $6.98B. - Decreased Guidance

Listen to the Apple Conference Call for it’s Q1 Financial Results.

The market, during these questionable times reacted strongly to the decreased Quarter 2 guidance provided by Apple. Quarter 2 is historically a more difficult quarter. Apple always guides conservative and we imagine a lot of it has to do with analysts misunderstanding of their IPhone revenue recognition program.

How our portfolios will adjust tomorrow:

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