Apple Earnings: Profits and Revenue Surge By Double Digits Again

S&P 500 (NYSE:SPY) component Apple Inc. (NASDAQ:AAPL) reported higher profit for the fourth 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.

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Apple Inc. Earnings Cheat Sheet

Results: Net income for Apple Inc. rose to $8.22 billion ($8.67 per share) vs. $6.62 billion ($7.05 per share) in the same quarter a year earlier. This marks a rise of 24.2% from the year-earlier quarter.

Revenue: Rose 27.2% to $35.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Apple Inc. fell short of the mean analyst estimate of $8.85 per share. It fell short of the average revenue estimate of $37.23 billion.

Quoting Management: “We’re pleased to have generated over $41 billion in net income and over $50 billion in operating cash flow in fiscal 2012,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first fiscal quarter of 2013, we expect revenue of about $52 billion and diluted earnings per share of about $11.75.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 44.2%, with the biggest boost coming in the first quarter when revenue rose 73.3% from the year earlier quarter.

The company has now seen its net income rise for three quarters in a row. In the third quarter, net income rose 20.7% and in the second quarter, the figure rose 94.1%.

The company has fallen short of estimates for two consecutive quarters. In the third quarter, it missed expectations by $1.03 with net income of $9.32 versus a mean estimate of net income of $10.35 per share.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the first quarter of the next fiscal year has reached $15.67 per share, up from $15.56. The average estimate for the fiscal year has seen a bump from $43.89 per share sixty days ago to $44.27.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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