http://www.cnbc.com/id/38322507
Apple Outstrips Wall Street Earnings Forecasts; Shares Jump
Published: Tuesday, 20 Jul 2010 | 7:12 PM ET
By: CNBC.com and Reuters
Apple easily topped analysts' expectations in its fiscal third quarter and gave a better-than-expected sales forecast, pushing the company's stock higher in extended trading Tuesday.
Apple's stellar financial performance in the June quarter helped ease investor fears, and may silence a chorus of critics who have been hammering the company over its handling of the iPhone 4 "Antennagate" controversy revolving around complaints about signal loss on the new gadget.
"These numbers will go a long way to make people forget about any antenna issues," said Edward Jones analyst Bill Kreher.
Although the iPhone and iPad generated most of the headlines, it was the Mac computer that helped make the quarter for the company. Apple said it sold 3.47 million Macs in the quarter, along with 9.41 million iPods, 8.4 million iPhones and 3.27 million iPads.
The company reported fiscal third-quarter earnings of $3.51 a share excluding one-time items, up from $1.35 a share a year ago.
Revenue leaped to $15.7 billion, up from $8.337 billion last year.
Analysts who follow Apple saw the company reporting a profit of $3.11 a share on sales of $14.746 billion, according to a consensus estimate from Thomson Reuters.
The computer and personal electronics company also gave a forecast for the current quarter that topped expectations, saying it expects to report a profit of about $3.44 a share on sales of about $18 billion.
Apple historically low-balls the outlook it provides. Analysts who follow Apple see the company earning $3.81 a share in the fourth quarter on sales of $16.98 billion.
Chief Financial Officer Peter Oppenheimer repeatedly declined to say whether the "Antennagate" controversy had impacted sales of the iPhone 4, saying only: "We are not currently able to meet demand."
Complaints about the iPhone 4's reception surfaced soon after its release on June 28, with users saying the wireless signal weakens drastically when the device is held in a certain way. Apple's shares fell about 8.4 percent in those 3 weeks through Monday.
Investors cheered the results in extended trading. Apple shares were up about 3 percent. Get after-hour quotes for Apple here.
The stock finished the regular Nasdaq session [AAPL 251.89 6.31 (+2.57%) ] up about 2.5 percent at $251.89 a share.
"These are astounding numbers and even more astounding guidance," said Yair Reiner of Oppenheimer & Co. "This is one of the few times in recent memory that Apple's guidance has been ahead of the street, at a time when investors were getting concerned the iPhone 4 antenna issues could hamper sales. Apple's sending a strong signal it sees things differently."
Apple's net income, which includes one-time items, rose to $3.25 billion, or $3.51 a share, up from $1.83 billion, or $2.01 a share, in the year-ago period.
Apple Outstrips Wall Street Earnings Forecasts; Shares Jump
Published: Tuesday, 20 Jul 2010 | 7:12 PM ET
By: CNBC.com and Reuters
Apple easily topped analysts' expectations in its fiscal third quarter and gave a better-than-expected sales forecast, pushing the company's stock higher in extended trading Tuesday.
Apple's stellar financial performance in the June quarter helped ease investor fears, and may silence a chorus of critics who have been hammering the company over its handling of the iPhone 4 "Antennagate" controversy revolving around complaints about signal loss on the new gadget.
"These numbers will go a long way to make people forget about any antenna issues," said Edward Jones analyst Bill Kreher.
Although the iPhone and iPad generated most of the headlines, it was the Mac computer that helped make the quarter for the company. Apple said it sold 3.47 million Macs in the quarter, along with 9.41 million iPods, 8.4 million iPhones and 3.27 million iPads.
The company reported fiscal third-quarter earnings of $3.51 a share excluding one-time items, up from $1.35 a share a year ago.
Revenue leaped to $15.7 billion, up from $8.337 billion last year.
Analysts who follow Apple saw the company reporting a profit of $3.11 a share on sales of $14.746 billion, according to a consensus estimate from Thomson Reuters.
The computer and personal electronics company also gave a forecast for the current quarter that topped expectations, saying it expects to report a profit of about $3.44 a share on sales of about $18 billion.
Apple historically low-balls the outlook it provides. Analysts who follow Apple see the company earning $3.81 a share in the fourth quarter on sales of $16.98 billion.
Chief Financial Officer Peter Oppenheimer repeatedly declined to say whether the "Antennagate" controversy had impacted sales of the iPhone 4, saying only: "We are not currently able to meet demand."
Complaints about the iPhone 4's reception surfaced soon after its release on June 28, with users saying the wireless signal weakens drastically when the device is held in a certain way. Apple's shares fell about 8.4 percent in those 3 weeks through Monday.
Investors cheered the results in extended trading. Apple shares were up about 3 percent. Get after-hour quotes for Apple here.
The stock finished the regular Nasdaq session [AAPL 251.89 6.31 (+2.57%) ] up about 2.5 percent at $251.89 a share.
"These are astounding numbers and even more astounding guidance," said Yair Reiner of Oppenheimer & Co. "This is one of the few times in recent memory that Apple's guidance has been ahead of the street, at a time when investors were getting concerned the iPhone 4 antenna issues could hamper sales. Apple's sending a strong signal it sees things differently."
Apple's net income, which includes one-time items, rose to $3.25 billion, or $3.51 a share, up from $1.83 billion, or $2.01 a share, in the year-ago period.
