Why I Could Care Less About Apple’s Earnings

Apple (NASDAQ: AAPL ) reports earnings after the bell Tuesday, and there still
is plenty of commentary and lots of trading on the news. Me? Ill check the
numbers, but their report doesnt change my opinion of Apple one bit. Dont get me
wrong. Earnings are the lifeblood of a companys growth for most companies.
Earnings are the clearest proof of a companys operating success how its
creating profits, delivering value to shareholders and winning the battle
against its competitors. Thats why earnings growth, earnings momentum, earnings
revisions and earnings surprises are four of the critical markers I use to
identify stocks worth owning. Stocks that score well on these metrics are worthy
of your investment dollar. Stocks that cant shine should be skipped without a
second thought. Let me tell you exactly why Apples earnings dont matter. Apple
Is in a Whole Different League Apple has had a remarkable run for over a decade
now, churning out a steady succession of innovative products with unmatched
customer loyalty. In the process of rolling out iMacs, iTunes, iPods, iPads and
so many other exciting products, theyve revolutionized industries from music and
telecommunications to gaming and personal computing. No wonder the stock has
risen nearly 30-fold since 2004. And regardless of what the actual numbers are
today, Apple shows no sign of slowing down. Heres just one example: Do you
realize that Apple cant even sell its products in some retail stores in China
anymore? Thousands of Chinese consumers stood in line all night for the chance
to nab the latest iPhone. It was such chaos that Apple has been forced to offer
its new products for sale online only. And they havent even released a 4G phone
yet. But the iPhone 4S has certainly been a hit. The iPhone 4S is now available
in over 90 countries, making this the fastest iPhone rollout ever. With this
kind of instant success, its no wonder consumer groups expect global sales of
consumer electronics to top $1 trillion in 2012. The Hits Keep Coming And thats
just one of Apples products. This company is also the reigning champ of tablet
sales. Heres some perspective for you: Excluding Apples tablets, the U.S. tablet
market saw sales of 1.2 million units from January through October of 2011. But
in just the last quarter, Apple alone moved 11.1 million iPads almost 10 times
as many as the entire market in that nine-month period. I could go on and on
about Apples products, its expansion into new countries, the companies it has
bought up for its upcoming gadgets or its partnerships with companies like
Target (NYSE: TGT ) to place mini-Apple stores inside the discount retailers big
boxes . But I wont. When Apple reports earnings, it wont make one bit of
difference to me if they beat the $10.08 a share profit expectations or hit the
$38.85 billion sales target. It wont matter to me if shares drop a bit or rise
on the earnings announcement. This company is going to continue to dominate the
consumer electronics industry for years to come, thanks to superior customer
focus, innovative engineers and designers and a truly awesome cash hoard theyve
amassed. All those advantages have created the superior machine that is Apple,
which is reflected not just in earnings, but also in operating margins, cash
flow, buying pressure and all the other signals I look for. So I, for one, would
be a buyer of shares of this phenomenal company now, next month, next quarter
and throughout 2012 no matter what we hear from Apple.