Ahead of Apple's second-quarter financial results, due to be announced later today, research firm Morgan Stanley has increased its estimates for the computer company, citing better-than-expected sales of iPods, Mac OS X Panther and iBooks in the quarter.

According to Forbes, the research firm has raised expectations for the quarter to earnings of 10 cents per share on revenue of $1.82 billion. This compares to an earlier estimate for earnings of 9 cents per share on revenue of $1.81 billion.

Morgan Stanley also raised fiscal 2004 estimates to earnings of 49 cents per share on revenue of $7.69 billion, compared with an earlier estimate of 45 cents per share on revenue of $.750 billion.

According to Morgan Stanley, Power Mac G5 sales are the main cause for concern. The company said: "Our only concern lies with the possibility of disappointing G5 sales in the period." The firm lowered its second-quarter G5 unit forecast to 181,000 units from 212,000 units.

For the remainder of fiscal 2004, Morgan Stanley increased its iPod unit estimates to 3.7 million from 2.8 million.

Forbes also reports that analysts surveyed by Thomson First Call expect Apple to earn 10 cents per share compared with 4 cents a year ago.