Apple earnings and the expectations game

Here's the way it usually comes down: Apple issues very conservative guidance on its financial results, and ends up smashing expectations. Not today. The company reported fourth-quarter earnings that were below expectations - even though profits for the three month period were up 54 percent. One explanation: The iPhone 4S didn't go on sale until after the quarter ended (the new model of the iPhone had the best initial sales of any iPhone yet). Predictably, Apple shares are taking a hit in after-hours trading, but nobody seems super-concerned. I mean, a 54 percent jump in earnings - what's the problem? (NYT)

*WSJ's Dennis Berman offers another reason not to worry: Apple has $80 billion of cash on hand, which is greater than the market caps of 470 companies on the S&P 500.