Apple (NASDAQ:AAPL) really doesn’t need any special introductions. It is one of the greatest companies and creators of wealth in human financial history. What we do need to discuss is whether the stock is a buy at current levels post the 7 for 1 stock split. To assess this, a review of the company’s recent performance as well as a discussion of the company’s innovation and guidance looking ahead is certainly warranted.
Apple’s recent financial results for its fiscal 2014 second-quarter ended March 29, 2014 were pretty strong. The company posted quarterly revenue of $45.6 billion and quarterly net profit of $10.2 billion, or $11.62 per diluted share. These results compare to revenue of $43.6 billion and net profit of $9.5 billion, or $10.09 per diluted share, in the year-ago quarter. Gross margin was 39.3 percent compared to 37.5 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue. Further, Apple generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter. That brings cumulative payments under its capital return program to $66 billion. Tim Cook, Apple’s CEO, stated:
We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services. We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.