The Zacks Analyst Blog Highlights: Apple, Texas Instruments, IBM and Chipotle Mexican Grill

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Oct 21, 2014, 09:30 ET

CHICAGO, Oct. 21, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Apple (Nasdaq:AAPL-Free Report), Texas Instruments (Nasdaq:TXN-Free Report), IBM (NYSE:IBM-Free Report) and Chipotle Mexican Grill (NYSE:CMG-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

Apple Beats on Earnings & Sales, Guides Strongly

The release of the iPhone 6 and 6+ helped Apple (Nasdaq:AAPL-Free Report) beat earnings and revenue estimates in its fiscal Q4 report announced after the bell Monday. Overall sales of $42.1 billion with earnings per share (EPS) of $1.42 far exceeded Zacks consensus estimates of $39.96 billion and $1.30 per share, respectively.

Further, Apple provided fiscal Q1 2015 guidance of $63.5-66.5 billion in sales, the high range of which easily topped the Zacks consensus of $64.4 billion. After gaining 2.14% in regular-day trading, Apple shares are up a smidge following the earnings report in the after-market.

iPhone shipments for the September quarter reached 39.3 million units, better than the 38 million expected. iPad sales were down 13% year over year, and missed expectations of 13 million units shipped, reaching only 12.3 million. But that seems to be the only smudge in Apple's fiscal Q4 at first glance; Mac shipments of 5.5 million exceeded the 4,75 million expected, and was the best quarter ever for Mac sales.

With Apple Pay launching just today, we'll be able to track another significant revenue stream in the coming quarters, but even still, Apple seems to be back to its old self again, easily beating earnings expectations on impressive execution bringing highly desirable products to market. iPhone sales in the launch weekend for the iPhone 6 and 6+ reached 10 million, and with the launch coming as it did at the end of fiscal Q4, expectations of iPhones driving growth appear sound.

Apple has now beaten earnings expectations in each of the past 5 quarters, though today's beat was by the widest margin in the past 10 quarters. Apple shares currently carry a Zacks Rank #2 (Buy).

Also reporting earnings after the bell Monday was Texas Instruments (Nasdaq:TXN-Free Report), or TI. Much as Apple did, TI topped on both top and bottom lines with earnings of 76 cents per share and $3.5 billion in revenues. This was better than the 71 cents and $3.28 billion, respectively, we had anticipated. TXN shares are up 2.5% thus far in late-day trading. TI is currently a Zacks Rank #3 (Hold) stock.

It would appear as if IBM's (NYSE:IBM-Free Report) poor earnings release before the bell today is not necessarily related to a greater problem within the tech industry as a whole, or at least not as far as Apple and Texas Instruments are concerned.

Chipotle Results Sizzle, but Guidance Fizzles

Chipotle Mexican Grill (NYSE:CMG-Free Report) beat on both the top and bottom lines today. Earnings came in at $4.15 compared to the Zacks Consensus Earnings Estimate of $3.86, and Revenues were at $1.08 billion slightly ahead of the Zacks Consensus Revenue Estimate of $1.053 billion. CMG continued its growth story, outpacing the year ago earnings numbers by 49%, and the revenue numbers by 31%.

The big question going into this earnings announcement was the overall impact the price increase would have on foot traffic and sales growth. Chipotle increased prices about 6% towards the end of the last quarter, with this quarter being the first full quarter with the price increases. Well, prices went up, and sales went up as well.

Chipotle saw sales growth in the forms of increased traffic, and increased average check. Further Comparable Same Store sales increased 19.8%, ahead of the 17.3% expected increase.

On the negative side, management stated that food costs were 34.3% of total revenues, only slightly below the 34.6% last quarter. This was due to increased costs of beef, avocados, and dairy products. Further, management stated that they expect low to middle single digit Comparable Same Store Sales in 2015.

This last bit of news caused the stock to drop in afterhours trading activity. At the time of this writing, the stock is trading down just above 2% on mild volume. Tomorrow, Zacks will publish a fully detailed earnings report on Chipotle Mexican Grill.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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