http://www.cnbc.com/id/32029614
Apple Profit Tops Forecasts on Strong iPhone Sales
Published: Tuesday, 21 Jul 2009 | 5:53 PM ET
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By: CNBC.com with Reuters
Apple posted a quarterly profit that blew past Wall Street forecasts thanks to strong sales of Mac computers and improved margins, sending its shares higher in extended trading Tuesday.
Apple said it earned $1.35 a share in its fiscal third quarter, excluding one-time items, on sales of $8.34 billion. That compares with $1.19 a share on sales of $7.46 billion in the same period last year.
Analysts who follow Apple expected the company to turn in a gain of $1.17 a share on sales of $8.2 billion, according to a consensus from Thomson Reuters.
"Obviously it's a phenomenal beat, particularly on the bottom line, printing $1.35. We were at $1.17," said Daniel Ernst, analyst at Hudson Square Research. "It demonstrates operating efficiencies. Most of the numbers were better than expected, particularly the Macs."
Apple shares [AAPL 151.51 -1.399 (-0.91%) ], which closed Tuesday 0.91 percent lower at $151.51, were up almost 4 percent in extended trading. Get after-hour quotes for Apple here.
Analysts had some concern heading into the earnings about margin pressure, given price cuts on the iPhone and the trend of higher component costs.
But Apple posted a gross margin of 36.3 percent, which beat the 34 percent that some analysts had predicted. That compared with 36.4 percent in the last quarter and 34.8 percent a year ago.
The results demonstrated the consumer appeal of Apple's products despite a troubled world economy that has dented sales at competitors selling less expensive products. Investors have snapped up Apple's stock this year, pushing it up at a pace well ahead of other big technology issues.
Sales of Macs and iPhones beat expectations in the June quarter, while iPod sales were toward the low end of forecasts.
Apple said it sold 2.6 million Macs, up 4 percent from a year ago, benefiting from a refresh last quarter and lower prices on laptops. It sold 5.2 million iPhones in the June quarter, during which it had launched its third-generation iPhone 3GS and cut the price on the second-generation model to $99.
It shipped 10.2 million iPods, down 7 percent year on year.
Apple issued a typically conservative outlook for the current quarter, forecasting earnings of $1.18 to $1.23 a share on revenue of $8.7 billion to $8.9 billion.
http://www.cnbc.com/id/32050566
Apple Wallops Wall Street
Published: Tuesday, 21 Jul 2009 | 4:57 PM ET
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By: Jim Goldman
Silicon Valley Bureau Chief
Apple Store
Kirsty Wigglesworth / AP
A flag showing the Apple Computer logo flies outside the Apple shop in Regent Street, London
Apple investors needed a home run from Apple [AAPL 151.51 -1.399 (-0.91%) ], the company stepped up to the plate and promptly knocked a line drive over the center field fence.
Apple reported $1.35 a share versus the $1.17 expected, on $8.34 billion, or $200 million better than Wall Street expected.
In fact, this report eclipses last quarter's as Apple's best, non-holiday quarter ever.
Recession? What recession? Certainly not at Apple. I mean, are you kidding me? Maybe the naysayers will hunker down a little bit and begin to truly appreciate the fundamental and consistent performance of this company.
Mac sales: 2.6 million; iPhones, 5.2 million; iPods, 10.2 million. Huge numbers all. And a gross margin of 36.3 percent, matching last quarter's performance. How? How? How?
The company's guidance, what Gene Munster just called "comical," calls for an EPS range of $1.18 to $1.23 on revenue of $8.7 billion to $8.9 billion. The Street expected $1.20 to $1.29 as an EPS range, on $8.9 billion to $9 billion. So Apple's typically conservative guidance is actually a little less so this time around, and that bodes well for Apple's momentum on Wall Street to continue.
This is a blockbuster report. Plain and simple.
Apple Profit Tops Forecasts on Strong iPhone Sales
Published: Tuesday, 21 Jul 2009 | 5:53 PM ET
Text Size
By: CNBC.com with Reuters
Apple posted a quarterly profit that blew past Wall Street forecasts thanks to strong sales of Mac computers and improved margins, sending its shares higher in extended trading Tuesday.
Apple said it earned $1.35 a share in its fiscal third quarter, excluding one-time items, on sales of $8.34 billion. That compares with $1.19 a share on sales of $7.46 billion in the same period last year.
Analysts who follow Apple expected the company to turn in a gain of $1.17 a share on sales of $8.2 billion, according to a consensus from Thomson Reuters.
"Obviously it's a phenomenal beat, particularly on the bottom line, printing $1.35. We were at $1.17," said Daniel Ernst, analyst at Hudson Square Research. "It demonstrates operating efficiencies. Most of the numbers were better than expected, particularly the Macs."
Apple shares [AAPL 151.51 -1.399 (-0.91%) ], which closed Tuesday 0.91 percent lower at $151.51, were up almost 4 percent in extended trading. Get after-hour quotes for Apple here.
Analysts had some concern heading into the earnings about margin pressure, given price cuts on the iPhone and the trend of higher component costs.
But Apple posted a gross margin of 36.3 percent, which beat the 34 percent that some analysts had predicted. That compared with 36.4 percent in the last quarter and 34.8 percent a year ago.
The results demonstrated the consumer appeal of Apple's products despite a troubled world economy that has dented sales at competitors selling less expensive products. Investors have snapped up Apple's stock this year, pushing it up at a pace well ahead of other big technology issues.
Sales of Macs and iPhones beat expectations in the June quarter, while iPod sales were toward the low end of forecasts.
Apple said it sold 2.6 million Macs, up 4 percent from a year ago, benefiting from a refresh last quarter and lower prices on laptops. It sold 5.2 million iPhones in the June quarter, during which it had launched its third-generation iPhone 3GS and cut the price on the second-generation model to $99.
It shipped 10.2 million iPods, down 7 percent year on year.
Apple issued a typically conservative outlook for the current quarter, forecasting earnings of $1.18 to $1.23 a share on revenue of $8.7 billion to $8.9 billion.
http://www.cnbc.com/id/32050566
Apple Wallops Wall Street
Published: Tuesday, 21 Jul 2009 | 4:57 PM ET
Text Size
By: Jim Goldman
Silicon Valley Bureau Chief
Apple Store
Kirsty Wigglesworth / AP
A flag showing the Apple Computer logo flies outside the Apple shop in Regent Street, London
Apple investors needed a home run from Apple [AAPL 151.51 -1.399 (-0.91%) ], the company stepped up to the plate and promptly knocked a line drive over the center field fence.
Apple reported $1.35 a share versus the $1.17 expected, on $8.34 billion, or $200 million better than Wall Street expected.
In fact, this report eclipses last quarter's as Apple's best, non-holiday quarter ever.
Recession? What recession? Certainly not at Apple. I mean, are you kidding me? Maybe the naysayers will hunker down a little bit and begin to truly appreciate the fundamental and consistent performance of this company.
Mac sales: 2.6 million; iPhones, 5.2 million; iPods, 10.2 million. Huge numbers all. And a gross margin of 36.3 percent, matching last quarter's performance. How? How? How?
The company's guidance, what Gene Munster just called "comical," calls for an EPS range of $1.18 to $1.23 on revenue of $8.7 billion to $8.9 billion. The Street expected $1.20 to $1.29 as an EPS range, on $8.9 billion to $9 billion. So Apple's typically conservative guidance is actually a little less so this time around, and that bodes well for Apple's momentum on Wall Street to continue.
This is a blockbuster report. Plain and simple.
