Leigh Drogen

About the Author Leigh Drogen

Leigh Drogen is the Founder and CEO of Estimize. Estimize is an open financial estimates platform which facilitates the aggregation of fundamental estimates from independent, buy-side, and sell-side analysts, along with those of industry experts, private investors and students. By sourcing estimates from a diverse community of individuals, Estimize provides both a more accurate and more representative view of expectations compared to sell side only data. Leigh started his career as a quant trader at Geller Capital, a White Plains, NY based fund where he ran strategies that looked at earnings acceleration and analyst estimate revision models, as well as price momentum and several sentiment indicators. Leigh later went on to be the founder of Surfview Capital, a New York based asset management firm that used many of the same strategies as Geller Capital, with a focus on higher beta names on an intermediate term time frame. His educational background includes focus in economics and international relations, specifically war theory. He is a graduate with honors from Hunter College in New York City. You can contact Leigh by emailing him at Leigh@estimize.com

Apple Inc. (AAPL) Will Set Q2 Records Today, But Can They Live Up to Colossal Expectations?

Apple Inc. (NASDAQ:AAPL) is more than three quarters of the way to becoming the world’s first $1 trillion company. After knocking it out the park last quarter with record iPhone sales, App store revenue, and Mac sales Apple has reached a market cap of $758 billion.

The company’s stock is scrapping all time highs ahead of its Monday afternoon earnings report and expectations have never been steeper. During the holiday quarter Apple recorded an unprecedented $18 billion in net profit on $57.6 billion in revenue. Analysts don’t expect this quarter to compete with holiday sales, but demands for Apple’s second fiscal quarter have never been higher.

Wall Street is forecasting that Apple will report $2.18 in earnings per share and $56.34 billion in sales. 372 contributors on Estimize have come to a consensus expectation of $2.27 in EPS and $57.36 billion in sales.

Last quarter 74.5 million iPhone sales helped Apple increase its earnings and revenue by 48% and 30% respectively on a year over year basis. Even though projections for Apple’s Q2 are at all time highs, they should be within reach. To match the estimates of contributing analysts on Estimize, Apple’s year over year growth rates could relax to 37% for EPS and 26% on sales.

Given how high the expectations are for this quarter Apple stock has predictably made a nice run ahead of its earnings report. But if the world’s most valuable company is going to justify its $758 billion price tag and make a move toward the $1 trillion mark, jumping over the bar won’t be easy.