Apple is Still Hoarding Cash

Apple (NASDAQ:AAPL), currently the world’s largest publicly traded company, reported its latest round of earnings after Wednesday’s closing bell. The results on the top line disappointed analysts, but the tech giant beat on earnings and is still a huge cash hoarding machine.

For its fiscal 2013 first quarter, Apple posted a net profit of $13.1 billion ($13.81 per diluted share), compared to $13.1 billion ($13.87 per diluted share) a year earlier. The recent quarter included one less week than a year earlier, but revenue still jumped 17.7 percent to $54.5 billion. Analysts had expected Apple to earn $13.47 per share on $54.9 billion in revenue. Apple’s own estimates called for $11.75 per share with revenue coming in at $52 billion.

Mr. Market was not pleased with the results. Shares of Apple fell more than 10 percent in late Wednesday trading and reached their lowest level since early 2012. The selling pressure continued into Thursday, with shares reaching below $460.

On the positive, Apple sold a record 47.8 million iPhones in the quarter, compared to 37 million a year earlier. Apple also sold a record 22.9 million iPads. International sales accounted for 61 percent of the quarter’s revenue.

Furthermore, Apple continues to build its war chest of cash…

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Taking the total of Apple’s cash and cash equivalents, short-term marketable securities and long-term marketable securities, the company’s cash position grew to $137.1 billion, another new record. In comparison, Apple held a total cash position of $97.6 billion a year earlier. On the conference call, Apple noted that over $94 billion of total cash is held offshore. As the chart below from Zero Hedge shows, Apple increasing its cash position is business as usual.

Screen Shot 2013-01-23 at 4.07.54 PM

Apple’s total cash position, is bigger than the entire market capitalization of Facebook (NASDAQ:FB), Hewlett-Packard (NYSE:HPQ), Dell (NASDAQ:DELL), Pandora (NYSE:P) and Netflix (NASDAQ:NFLX) combined.

“We’re pleased to have generated over $23 billion in cash flow from operations during the quarter,” said Peter Oppenheimer, Apple’s CFO. “We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our ecosystem, and generated Apple’s highest quarterly revenue ever.” He also notes that with the share repurchase plan and dividend, Apple returned $4.5 billion of cash in the quarter. Over the next three years, Apple expects to return $45 billion of cash to shareholders.

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