Apple will release its second quarter results tomorrow night amid a bevy of contradictory analyst predictions.
Analysts at Caris and company yesterday initiated some selling off of company stock when they downgraded the company from above average to average performance. Apple shares fell $1.82 to close at $41.92 as investors considered this.
Caris & Co. analyst Mark Stahlman said he believes the limits of the company's success are being tested. "There is a sense that the current enthusiasm might have overrun the realities," he warned.
Then, in a contrary move, JP Morgan analysts repeated that company's "overweight" rating on Apple, announcing raised estimates for its shares.
JP Morgan thinks the company will reveal revenues and earnings ahead of consensus, will enjoy higher than expected operating leverage and strong growing revenues.
Further commentary on Apple's coming results comes from Walton Hodings fund manager Eugene Walton, writing for Yeald.com.
Walton warns that "seasonality and sustainability will pose challenges for the company". He explains that while most consumer electronics company's plan for a post Christmas weakness in trading, for Apple it's all new. He promotes a prognosis of Apple profits falling to $240 million in the quarter.
More experienced Mac industry observers may point out that Apple's second quarter is traditionally its weakest.
Walton isn't convinced Apple will be able to maintain its success, given the increasing quality and intensity of competition in the music market.