Apple Earnings: Double Digit Profit and Revenue GROWTH
S&P 500 (NYSE:SPY) component Apple Inc. (NASDAQ:AAPL) reported higher profit for the third quarter as revenue showed growth. Apple offers a range personal computers, mobile devices, and portable digital music and video players. The company also sells related software, services, peripherals, and networking solutions.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
Apple Inc. Earnings Cheat Sheet
Results: Net income for Apple Inc. rose to $8.8 billion ($9.32 per share) vs. $7.31 billion ($7.79 per share) in the same quarter a year earlier. This marks a rise of 20.4% from the year-earlier quarter.
Revenue: Rose 22.5% to $35 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Apple Inc. fell short of the mean analyst estimate of $10.38 per share. It fell short of the average revenue estimate of $37.23 billion.
Quoting Management: “We’re thrilled with record sales of 17 million iPads in the June quarter,” said Tim Cook, Apple’s CEO. “We’ve also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS six this Fall. We are also really looking forward to the amazing new products we’ve got in the pipeline.” “We’re continuing to invest in the growth of our business and are pleased to be declaring a dividend of $2.65 per share today,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65.”
Apple (NASDAQ:AAPL) has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 55.1%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 82% from the year earlier quarter.
Last quarter, the company’s gross margin expanded one percentage points from the year-earlier quarter to 42.8%. It was the fifth consecutive quarter of gross-margin growth. During this time, margins have grown an average of 3.8 percentage points per quarter on a year-over-year basis.
Apple (NASDAQ:AAPL) has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 94.1% and in the first quarter, the figure rose more than twofold.
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by $2.27, and in the first quarter, it was ahead by $3.80.
Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $10.29 per share, down from $10.63 ninety days ago. The average estimate for the fiscal year is $46.85 per share, a rise from $44.22 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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