What are they are not telling their clients is that they missed a chance to make some money.
FORTUNE -- If the small army of analysts who track Apple (AAPL) are embarrassed by their failure -- across the board -- to alert clients that Apple was about beat the Street's consensus and announce a 7-for-1 split, and that its shares might pop better than 8% in after-hours trading, you wouldn't know it from their post-earnings notes.
"Many analysts," Carl Icahn tweeted after the numbers were released, "fail to understand company."
Below: Excerpts from the reports that arrived overnight. More as they come in.
Katy Huberty, Morgen Stanley: Stronger iPhone and User Growth Tees Up 2H14 Product Cycle. "We are buyers of the stock in light of low institutional ownership, stronger-than-expected iPhone sales, and upcoming product cycles not baked into consensus estimates... iPhone shipments of nearly 44M were above consensus of 38M and in line with the strength indicated by our AlphaWise Smartphone Tracker during the quarter. iPhone growth improved in a number of geographies, including double-digit growth in the US, 50% in Japan, and 28% in China. Improved mix drove gross margin to 39.3%, above guidance of 37-38%. Better-than-expected June guidance is in line with our prior model and straddles consensus at the high-end." Rating: Overweight. Price target: $630
Gene Munster, Piper Jaffray: First take: iPhone A Positive Surprise As Focus Remains On New Products. "Overall we view the significant upside to iPhone in the March quarter as a sign that the iPhone business is healthier than we and the Street previously expected, but note that the iPad business appears to be facing challenges. In terms of June, Apple guided slightly higher than we had expected, but given the reality that the Street will go to the high-end of guidance, we would view the guide as in-line with what the Street was already expecting. Overall we view the guide as a positive indicating the business is holding together with aging products." Overweight. $640.
Brian Marshall, ISI: Larger Screen iPhone is Desired by All... "The Mar-14 quarter reminded investors of the power of AAPL's franchise (e.g., near double-digit underlying growth, etc.). We believe new product category introductions in the 2H can help further restore/enhance the brand and ecosystem while an iPhone (~60% of gross profits) refresh invigorates sales/EPS growth... While we view the current lack of a ~5.0" iPhone as AAPL's largest product "misstep" in recent years, we believe the "stickiness" of the ecosystem is as strong as ever. In our view, a large form-factor iPhone in 2H will spark a massive upgrade cycle (i.e., "mother lode") in the ~280mil install base as well as the return of some former iPhone users from the Android platform. Strong buy. $600.
Brian White, Cantor Fitzgerald: Our Initial Thoughts on Apple's 2Q:FY14 Results. "Apple reported 2Q:FY14 iPhone unit sales of 43.72 million that handily beat our estimate of 36.0 million, while iPad units of 16.35 million units missed our 18.0 million projection. Mac unit sales came in at 4.14 million units vs. our 4.1 million projection... In our view, more important than tonight's results is the rollout of the iPhone 6 and entry into a new product category with the iWatch that we anticipate in the second-half of the year." Buy. $777.
Peter Misek, Jefferies: First thoughts on FQ2. "iPhones were much stronger than expected but CQ2 guidance is worse as some iPhones we expected for CQ2 were pulled forward. Demand is clearly there and now with the feared June guidance out of the way it is possible to be aggressively buying the shares ahead of what we believe will be a successful iPhone 6 launch." Buy. $625.
More to come.
Apple reports earnings of $11.62 per share on sales of $45.6 billion, a Q2 record.
FORTUNE -- The numbers are in, and they're surprisingly good. Stronger than expected iPhone sales seem to have boosted both the gross margin and the bottom line. iPad sales were a little weak, due largely to channel inventory changes. Mac sales were up and the iPod business, as expected, has pretty much collapsed. Apple press release.
In MOREPhilip Elmer-DeWitt - Apr 23, 2014 4:00 PM ET
"Powerful" is getting heavily re-tweeted, and the early reviews online are positive.
FORTUNE -- Two years after marketing VP Phil Schiller's outburst, the team doing Apple's (AAPL) TV advertising seems to be "feeling it" again.
The ad is available on YouTube.Philip Elmer-DeWitt - Apr 23, 2014 2:14 PM ET
With today's earnings expected to be ho-hum, does Apple have a surprise up its sleeve?
FORTUNE -- On Tuesday, Re/code's Walt Mossberg joined the parade of Apple (AAPL) watchers wondering whether the company has lost its innovative magic.
To Mossberg's credit, he points out that there was a six-year gap between the iPod and the iPhone, and that it's only been four years since Steve Jobs -- knowing his end was near -- pushed out the iPad.
Still, the operative metaphor of Mossberg's piece MOREPhilip Elmer-DeWitt - Apr 23, 2014 6:34 AM ET
Dutch royalty once shopped in the century-old fashion house where Apple now sells iPads.
FORTUNE -- Queen Emma of The Netherlands, who in 1879 married a man once described as "the greatest debauchee of the age," used to buy her gowns in the building that now houses Apple's (AAPL) retail presence in Amsterdam. So did her daughter, Queen Wilhelmina. And so did Wilhelmina's daughter, Queen Juliana.
In its heyday, the building Leo Hirsch erected on the Leidseplein to MOREPhilip Elmer-DeWitt - Apr 23, 2014 4:15 AM ET
The average forecast of 40 analysts: Earnings up 2.4% year over year, revenue down 0.2%.
FORTUNE -- With one day to go before Apple (AAPL) is scheduled to report its earnings for the March quarter – Q2 in Apple's fiscal year -- the expectations of the analysts polled for Fortune's quarterly round-up are not high.
In fact, they're either flat or down across the board according to the 40 analysts we've heard from so far. MOREPhilip Elmer-DeWitt - Apr 22, 2014 8:17 AM ET
Tim Cook responds to criticism from environmentalists with a video message of his own.
FORTUNE -- Apple (AAPL) continues to come under pressure from environmentalists and human rights groups to clean up its act.
Currently making the rounds on college campuses is filmmaker Heather White's Who Pays the Price, a 9:30-minute video that begins in the style of a soft-voiced Apple promo ("This is what matters. The experience of a product. Will it make life better...") but quickly MOREPhilip Elmer-DeWitt - Apr 21, 2014 1:50 PM ET
Average estimate: $10.32 per share on sales of $43.5B. Apple's guidance: $42 to $44B.
FORTUNE -- Apple's (AAPL) share price got clobbered in after-hours trading three months ago when the company announced its earnings for the Christmas quarter. The problem was not the record sales of Macs, iPads and iPhones -- although the iPhone numbers came in a bit lighter than expected.
No, what knocked nearly $45 billion off Apple's market cap that night was MOREPhilip Elmer-DeWitt - Apr 21, 2014 3:22 AM ET
Estimates range from $4 billion to nearly $5 billion, but growth continues to slow.
FORTUNE -- Apple's (AAPL) No. 4 revenue stream -- after the iPhone, iPad and Mac -- is a line item the company calls iTunes, Software and Services.
The category is something of a hodgepodge -- a grab bag where the company tosses, to quote from a footnote in its SEC filings, "revenue generated by sales on the iTunes Store, the App Store, the Mac App Store and the iBookstore, plus revenue from sales MOREPhilip Elmer-DeWitt - Apr 20, 2014 2:29 AM ET
The estimates range from 3.7 million to 4.8 million. Average: 4 million, up 2.8% from 2013.
FORTUNE -- Once Apple's (AAPL) biggest money maker, the Mac at 12% of total revenue is now No. 3 after the iPhone (52%) and iPad (20%).
[No. 4 at 7.6% and climbing fast is the category Apple calls "iTunes, Software and Services."]
The good news for the axis of Apple's digital hub strategy is that the year-over-year declines the Mac suffered for MOREPhilip Elmer-DeWitt - Apr 19, 2014 5:26 AM ET
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