I’m thinking that the sympathetic drop in SWKS as a reaction to AAPL guidance is an over-reaction (which I’m beginning to understand to be the norm).
First, $1.85 EPS met the consensus of the 39 analysts who follow AAPL. YoY revenue growth for the iPhone was 59%, YoY growth in enterprise earnings was 44%, and TTM growth in enterprise earnings was 40%. And SWKS as an AAPL supplier takes a hit on this performance? What would a good quarter look like?
Second, just how much SWKS revenue is from AAPL? For some reason 15% sticks in my head - I don’t know if I read that somewhere or just fabricated it based on nothing factual - of course reading it somewhere might amount to the same thing. Anyway, AAPL is certainly not the only customer for SWKS.
Third, it’s customary for AAPL to provide light guidance, it’s easier to beat light numbers. You’d think that the “analysts” would be on to this game, but somehow it continues to elude them. It’s the old saw, Fool me once, shame on you. Fool me twice, shame on me. Fool me repeatedly and that’s proof I’m dumber than a post with an IQ rivaling that of a carrot.