Will AAPL Deliver Next Week?

When Apple Inc (NASDAQ: AAPL) takes the stage in San Francisco next week and lifts the wraps on what it calls its "latest creation," it will put an end to months of rumors and speculation. However, that will not be the next time we hear of the consumer-electronics maker. The company is likely to report results for the December quarter two days prior to this much-awaited event. Wall Street analysts expect AAPL’s earnings to rise to $2.07 a share, from $1.78 a share a year ago, on revenues of $12.05 billion, reflecting an 18% jump.

Although AAPL is expected to record impressive earnings, driven by iPhone and Mac products, analysts say that all eyes will be on the company’s event, where it is widely expected to release its touch-screen tablet device. The device is expected to be similar to a large-screen version of the company's iPhone and facilitate the connectivity of a cell phone, while offering a more usable format for media files such as books, music and video.

Although AAPL has lost some of its steam since President Obama announced his proposal and is now trading at around $203, Gene Munster of Piper Jaffray believes that both events will act as a catalyst for the company’s share price. Several analysts believe that AAPL’s shares, which had already touched an all-time high of $215 this week, may go higher to touch $250. Others have gone a step ahead to predict AAPL’s target price at $280. At $250, the company will be trading at about 32 times estimated earnings for the coming year.

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