Apple Inc. Earnings: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component Apple Inc. (NASDAQ:AAPL) reported net income above Wall Street’s expectations for the first quarter. 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: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Apple Earnings Cheat Sheet for the First Quarter

Results: Net income for Apple Inc. rose to $13.06 billion ($13.87 per share) vs. $6 billion ($6.43 per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 73.3% to $46.33 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AAPL beat the mean analyst estimate of $10.07 per share. It beat the average revenue estimate of $38.76 billion.

Quoting Management: “We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs,” said Tim Cook, Apple’s CEO. “Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline. We are very happy to have generated over $17.5 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2012, which will span 13 weeks, we expect revenue of about $32.5 billion and we expect diluted earnings per share of about $8.50.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 69.5%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 82.7% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 53.7% and in the third quarter of the last fiscal year, the figure rose more than twofold.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of $7.05 versus a mean estimate of net income of $7.31 per share.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is $7.99 per share, up from $7.81 ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $34.33 per to share to $35.51.

Competitors to Watch: Hewlett-Packard Company (NYSE:HPQ), Dell Inc. (NASDAQ:DELL), Google Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Adobe Systems Incorporated (NASDAQ:ADBE), Intl. Business Machines Corp. (NYSE:IBM), Intel Corporation (NASDAQ:INTC), Super Micro Computer, Inc. (NASDAQ:SMCI), and Nokia Corporation (NYSE:NOK).

Stock Performance: Shares of AAPL were down 1.6% from the previous close.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com