Apple will reveal its second quarter financial results next week, and may reveal its second best-ever results, an analyst said last night.

American Technology Research analyst Shaw Wu expects Apple will reveal a "solid quarter exceeding its guidance of $4.3 billion in revenue and $0.38 in earnings per share (EPS)." The analyst rates Apple's stock as a 'buy'.

He expects the company to return results of $4.4 billion with $0.43 EPS and to have sold 8.8 million iPods in the previous quarter.

In a research note he urged clients to continue to buy Apple stock: "We believe Apple is well positioned to continue above market growth rates with arguably the industry's most powerful and complete stack of hardware, software, and service addressing the digital entertainment space," he said.

Looking ahead to Apple's third quarter, Wu wrote: "We continue to believe Apple will guide conservatively reflecting efforts to reduce inventory of PowerPC Macs and older iPod Nanos."

He predicts a $4.4 billion revenue target for the quarter, warning that existing consensus revenue estimates from other analysts are "unrealistically high".

"We believe Apple is well-positioned to deliver upside with strong seasonality and strong product momentum, including a new low-cost Intel portable and changes in its iPod line-up."

"We remain firm believers that the move to digital entertainment is a multi-year trend and that Apple is well positioned to capitalise with its unique and defendable iPod/iTunes and Mac franchises," he concluded.