Pre-Market

TZOO gapping up on earnings beat: TZOO prelim $0.24 vs $0.14 Reuters consensus; revs $16.9 mln vs $14.71 mln Reuters consensus

NDX futures up just slightly.

Piper Jaffray believes expectations are low for AAPL's March quarter results, noting that the co is scheduled to report March quarter results on 4/19. They expect Apple will report in line or slightly below Street consensus of $0.43 on $4.54 bln and, similar to last year, will guide June quarter revenue and EPS flat or up slightly from March quarter levels, which could be below consensus. Their analysis of the first 2 months of March quarter iPod shipment data from NPD leads them to believe Apple is on track to meet or be slightly below their 9.0 mln iPod assumptions. They expect Mac sales in the quarter will be closer to the Street's average estimate of 1.16mln. While they do not expect Apple's March quarter results and June quarter guidance will exceed expectations, they continue to believe that Apple will launch new products and gain market share with the Mac in 2H CY06 and CY07, which would likely lead to outperformance for AAPL shares. Firm's Mac market share sensitivity indicates that a 1% increase in share in CY06 would add $0.33 (or 14.5%) to their $2.28 CY06 EPS estimate.