After the close yesterday, Apple (AAPL) reported earnings of $1.19 a share, 12 cents more than analysts were expecting. The company had sales of $7.46 billion, $100 million more than analysts were expecting.

So how come the stock is down? The reason is that Apple gave very conservative guidance for their next earnings report. The company said to expect earnings of just $1 a share on sales of $7.8 billion. That's well below Street estimates of $1.23 a share and sales of $8.3 billion.

My view is that once again, Apple is trying to "low ball" Wall Street. This is fairly typical behavior for Apple. They do this so they can raise their earnings estimates in a few weeks. The important news is that last quarter's earnings were very strong. Apple continues to be an excellent buy.