Shares of AAPL were down 1% just before CFO Luca Maestri give guidance that December revenue to be 5% below the Street. Following that comment, shares of AAPL were trading down 4%. Maestri added some context that there are 13 weeks in this December quarter compared to last year’s 14 weeks, a detail most analyst likely had factored into their models. Luca added that if this December quarter had 14 weeks, revenue would likely be 7% y/y, compared to up 1% in the just reported September quarter.
Guessing how many analysts correctly factored in 13 weeks into their models is a fools errand. The bottom line is each week the business is expected to grow 7% y/y in December, and that’s a measurable step up from the 1% growth in September.
Additionally, the calendar will normalize in March and reveal a business that will likely continue to grow at around 5%, a level that I believe investors will be satisfied with.