Reply #81: Apple Rises Most in 6 Weeks After Prudential Boosts Estimates

[citizen snips]

Feb. 21 (Bloomberg) -- Apple Inc. shares rose the most in six weeks after Prudential Equity Group LLC increased its second-quarter profit estimates on expectations of rising sales of Macintosh personal computers and higher gross margins.

Weaker iPod sales are ``being more than offset by stronger Mac sales and higher margins due to a favorable component cost environment,'' wrote analysts including Jesse Tortora.

The analysts raised their earnings projections for this quarter by four cents to 68 cents. Apple is expected to earn 61 cents in the second quarter, according to the median estimate of analysts' forecasts compiled by Bloomberg News. The Prudential analysts also increased their forecast for gross margins to 31.5 percent from 30.5 percent.

Apple rose $2.57, or 3 percent, to $88.47 at 11:30 a.m. in Nasdaq Stock Market trading. The shares, which were having their largest advance since Jan. 10, have climbed 28 percent over the past year.

http://www.bloomberg.com/apps/news?pid=20601084&sid=awMoA4k38ADA&refer=stocks