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Apple reports $13.1B in Q1 2014 profit on record sales of 51M iPhones, 26M iPads

post #1 of 180
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Apple on Monday announced its earnings for the company's first fiscal quarter of 2014, netting $13.1 billion in profit on $57.6 billion in revenue, driven by sales of 51 million iPhones and 26 million iPads -- the most ever sold in a single quarter.

Style


Both the iPhone and iPad sales figures for the December quarter were new records for Apple, besting sales of 47.8 million iPhones and 22.9 million iPads in the year-ago quarter.

Shares of Apple fell nearly 6 percent after the results were first revealed Monday afternoon. Market expectations called for Apple to post $58 billion in revenues on sales of around 56.5 million iPhones and 24.5 million iPads.

Mac sales in the quarter were at 4.8 million, up from 4.1 million a year ago and better than investor projections of 4.6 million. However, Wall Street watchers place more emphasis on the company's iPhone and iPad lineups, which represent the lion's share of Apple's profits.

Apple posted its best quarter ever, but still came in slightly below Wall Street expectations, causing shares to dip in after-hours trading on Monday."We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services," said Apple Chief Executive Tim Cook. "We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better."

Apple earned $14.50 per diluted share in the just-concluded quarter, up from $13.81 a year ago. Gross margins dipped year over year, from 38.6 percent in the year-ago period, to 37.9 percent this fiscal year.

Looking forward to its fiscal 2014 second quarter, Apple has guided revenue between $42 billion and $44 billion with gross margin between 37 percent and 38 percent. The company projects operating expenses between $4.3 billion and $4.4 billion, with other income of around $200 million.

"We generated $22.7 billion in cash flow from operations and returned an additional $7.7 billion in cash to shareholders through dividends and share repurchases during the December quarter, bringing cumulative payments under our capital return program to over $43 billion," Apple Chief Financial Officer Peter Oppenheimer said.
post #2 of 180

Apple is doomed!!!! Sell your stock now! Tim Cook should be fired!

 

/sarcasm

post #3 of 180
iPhone numbers is well below expectations. EPS and margins are not a blowout but are good.
The stock could still rebound depending of what is said on the call.
post #4 of 180
 
Market expectations called for Apple to post $58 billion in revenues on sales of around 56.5 million iPhones and 24.5 million iPads.

 

Breaking: Apple fails to meet expectations, is doomed.

“The only thing more insecure than Android is its userbase.” – Can’t Remember

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post #5 of 180

That's a whole lotta iPhones. 

post #6 of 180
Missed the mark. It's over. Apple is a sinking ship. Icahn's howls will increase in volume, and he will force Apple to return to its beige-box days.
post #7 of 180
Obviously another total fail by Apple to not match and even exceed analysts' expectations. I have mind to liquidate my shares but cannot do so as I'm an actual long term investor and not a day trader.
post #8 of 180

Wall Street... What can I say? They're a bunch of shmucks.

Proud AAPL stock owner.

 

GOA

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post #9 of 180

iPhones up 7% YoY

iPads up 12% YoY

 

pretty disappointing

post #10 of 180
Quote:
Originally Posted by macinthe408 View Post

Missed the mark. It's over. Apple is a sinking ship. Icahn's howls will increase in volume, and he will force Apple to return to its beige-box days.

 

Biggest laugh of the day.

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post #11 of 180

http://forums.macrumors.com/showpost.php?p=18697809&postcount=24

 
"This is the fourth-highest quarterly earnings by any company (any country).


Of the six highest earnings ever, Apple now owns positions 4, 5, and 6. The top three are all oil companies."

 
post #12 of 180

Bravo Apple….

One thought he was invincible... the other thought he could fly.

They were both wrong.

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One thought he was invincible... the other thought he could fly.

They were both wrong.

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post #13 of 180
Please remove shoes before dancing on Apple's grave. "It's like the 1980s all over again!" /s

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #14 of 180
and it tanks
post #15 of 180

The conference call starts at 2:00 PM PST. 

 

Here's the link:  http://events.apple.com.edgesuite.net/14pijnaefvpijbnfdbvpijnbaefgvpjbnaef01/event/

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Proud AAPL stock owner.

 

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post #16 of 180
Apple smashes earnings records and iPhone sales by less than phony market expectations of just how much they should have smashed those records by. SELL SELL SELL!!!!

*smh*

I do not understand the logic of some investors.
post #17 of 180
Originally Posted by Quadra 610 View Post
This is the fourth-highest quarterly earnings by any company (any country). Of the six highest earnings ever, Apple now owns positions 4, 5, and 6. The top three are all oil companies.

 

DOOMED.

“The only thing more insecure than Android is its userbase.” – Can’t Remember

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“The only thing more insecure than Android is its userbase.” – Can’t Remember

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post #18 of 180
Quote:
Originally Posted by alphafox View Post

and it tanks

 

Clearly, Apple needs to buy Exxon. /s

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post #19 of 180
Quote:
Originally Posted by Tallest Skil View Post
 

 

DOOMED.

 

The Rainbow of Doom.

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GOA

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Proud AAPL stock owner.

 

GOA

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post #20 of 180
Imagine if Dell posted these numbers, or Google, or Microsoft... Now see what happened to Apples stock versus if it had been any one of those companies. Total BS. 1rolleyes.gif

Good work Apple! Keep making money and don't worry about the stock price, worry about the products you release.
NoahJ
"It is unwise to be too sure of one's own wisdom. It is healthy to be reminded that the strongest might weaken and the wisest might err." - Mahatma Gandhi
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NoahJ
"It is unwise to be too sure of one's own wisdom. It is healthy to be reminded that the strongest might weaken and the wisest might err." - Mahatma Gandhi
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post #21 of 180
Quote:
Originally Posted by macinthe408 View Post

Missed the mark. It's over. Apple is a sinking ship. Icahn's howls will increase in volume, and he will force Apple to return to its beige-box days.

"Shut it all down and give the money back to the shareholders."

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #22 of 180
Quote:
Originally Posted by focher View Post

Obviously another total fail by Apple to not match and even exceed analysts' expectations. I have mind to liquidate my shares but cannot do so as I'm an actual long term investor and not a day trader.

I seriously hope you weren't serious with your comment...

post #23 of 180
Quote:
Originally Posted by Tallest Skil View Post

DOOMED.

30th Anniversary of Doomed.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #24 of 180

Apple Inc sold fewer new iPhones than expected over the holidays, reflecting intense competition from arch-foe Samsung Electronics during the crucial period. -- Reuters

 

Talk about misleading first sentence!  Apple sold more phones YOY while Samsung sold fewer phones YOY.

 

And yes Apple's stock is down $31.03.  :-(((

post #25 of 180
I think people forget that Wall St. "expectations" are really just the news media, whose predictions are often wrong. This should speak more about the accuracy and ultimately the legitimacy of commercial media, but don't hold your breath waiting for them to correct their own behavior.

To be fair, press "expectations" for Samsung were also pretty off, however also to be fair, Samsung products still suck out loud.
post #26 of 180

Is anyone really surprised by this?

 

 

The scum bags on Wall Street have been beating their chests and proclaiming for weeks they know how Apple runs their business BETTER than Apple, and now that the real numbers come out, everyone thinks they are a failure because it didn't live up to the FABRICATED LIES that were perpetuated by anal-lysts and they go and tank the stock.

 

This is just the most disgusting form greed and utter stupidity I've ever witnessed! Like someone else posted, imaging if this were Microsoft, Google, or dare I say, Amazon, those same dirt bags would be creaming themselves over these results!

 

This is why I don't play the Wall Scum investment game, because it's so corrupt, only those with very deep pockets can afford to play it.

post #27 of 180
The number that I was surprised by was the cash flow. I was unaware of the specific definition for that and looked it up. This is the total earnings plus expenses such as depreciation that are taken out as expenses. I think this is a better measure of Apple's income given how conservative they are about paying down and writing off expenses. Remember the whole software expense write off? Apple has a 26% marginal tax rate. Any cash flow that can become an expense is less taxes to pay. That is basic business management when cash is not needed for any reinvestment that offers more than a 26% return rate. Apple's current cash position and strong intellectual portfolio are the reasons they can be so aggressive here. $22.7 is one huge pile of cash from one quarter of operations. I wonder where that ranks on records for public companies?
post #28 of 180
record sales; new products in the pipeline; loyal consumers...
jump off now before the ship sinks. it can't produce record sales forever!
post #29 of 180

I wonder how Apple executes their stock buybacks? Is it timed so as to avoid criminal charges? Does a third party decides when to best buy the stock?

Proud AAPL stock owner.

 

GOA

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GOA

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post #30 of 180
Quote:
Originally Posted by schlack View Post

record sales; new products in the pipeline; loyal consumers...
jump off now before the ship sinks. it can't produce record sales forever!

 

You forgot this:  /s

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post #31 of 180

Amazing quarter, but not for the iPhone. Almost 0 growth.

 

Apple has all the signs they need: If they want growth (Only someone out of touch with the reality would say that they “need” it to survive, as the best quarter ever shows… but let’s be real.) on the smartphone arena, especially the premium segment, a bigger screen is required.

 

For a modern smartphone (all about web, reading and editing docs, apps, pdfs and books, games and video) a bigger screen is required.

 

4.5 phones are very very portable, no big difference in size, huge difference in usability.

 

And a bigger iPhone line for the ones that want it but are buying the note, s4, g2, nexus, z1, one, etc. maybe another 30 million per quarter?

post #32 of 180

"Shares of Apple fell nearly 6 percent after the results were first revealed Monday afternoon. Market expectations called for Apple to post $58 billion in revenues..."

 

Of course, Wall Street sets their own expectations, ignoring Apple's guidance, as if that guidance has no bearing or credibility. If Wall Street accepted Apple's guidance, then they'd be VERY happy with the result. That is, Apple finished very, very close to the top of their guidance. Which was this (from the Q4 2013 call):

 

Apple provided the following guidance for its fiscal 2014 first quarter:

  • revenue between $55 billion and $58 billion (they posted $57.6 Bn ffs!)
  • gross margin between 36.5 percent and 37.5 percent (actual: 37.9. Slightly better than expected)
  • operating expenses between $4.4 billion and $4.5 billion
  • other income/(expense) of $200 million
  • tax rate of 26.25 percent

 

 

It really looks to me like Apple nailed the guidance. Again. Wall Street "analysts" really need to take note! And stop manipulating the stock!

post #33 of 180

Yeah, market expectations were way too high. Apple more than beat the estimates that they outlined for themselves, which under Cook have been way more aggressive than Jobs' low balling numbers.

post #34 of 180

Well, Tim, it looks like Wall Street is looking for your answer. This was definitely not it.

 

It looks like your margin of error is getting slimmer.

na na na na na...
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na na na na na...
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post #35 of 180
Originally Posted by SpamSandwich View Post

The Rainbow of Doom.

 

The second in the Timdiana Cook trilogy.

 

Rumors of the Next Phone

Timdiana Cook and the Rainbow of Doom

Timdiana Cook and the Lawsuit Aid

 

And then Timdiana Cook and the Sapphire Watch, but we don’t talk about that one.

“The only thing more insecure than Android is its userbase.” – Can’t Remember

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“The only thing more insecure than Android is its userbase.” – Can’t Remember

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post #36 of 180
Quote:
Originally Posted by MagMan1979 View Post
 

Is anyone really surprised by this?

 

 

The scum bags on Wall Street have been beating their chests and proclaiming for weeks they know how Apple runs their business BETTER than Apple, and now that the real numbers come out, everyone thinks they are a failure because it didn't live up to the FABRICATED LIES that were perpetuated by anal-lysts and they go and tank the stock.

 

This is just the most disgusting form greed and utter stupidity I've ever witnessed! Like someone else posted, imaging if this were Microsoft, Google, or dare I say, Amazon, those same dirt bags would be creaming themselves over these results!

 

This is why I don't play the Wall Scum investment game, because it's so corrupt, only those with very deep pockets can afford to play it.

 

Stock prices is all about growth potential, and Apple is not delivering it.  Guidance for next quarter is bad, iPhone number is bad, stock goes down, there is no mystery here and it doesn't mean Apple is doom or that analyst expectations were too high....

post #37 of 180
Quote:
Originally Posted by tribalogical View Post

"Shares of Apple fell nearly 6 percent after the results were first revealed Monday afternoon. Market expectations called for Apple to post $58 billion in revenues..."

Of course, Wall Street sets their own expectations, ignoring Apple's guidance, as if that guidance has no bearing or credibility. If Wall Street accepted Apple's guidance, then they'd be VERY happy with the result. That is, Apple finished very, very close to the top of their guidance. Which was this (from the Q4 2013 call):

Apple provided the following guidance for its fiscal 2014 first quarter:
[*] revenue between $55 billion and $58 billion (they posted $57.6 Bn ffs!)
[*] gross margin between 36.5 percent and 37.5 percent (actual: 37.9. Slightly better than expected)
[*] operating expenses between $4.4 billion and $4.5 billion
[*] other income/(expense) of $200 million
[*] tax rate of 26.25 percent



It really looks to me like Apple nailed the guidance. Again. Wall Street "analysts" really need to take note! And stop manipulating the stock!
I don't get how a stock can be down 6% when they meet or exceed their guidance.
post #38 of 180

Perhaps of note...

 

Apple sold 70 million iOS devices (iPhones + iPads) in Q1 last year VS 77 million of them this year. That's an incredible and solid 10% increase in volume year on year.

 

Growth like that is hard to manage in the best of times.

 

But it's Apple, so the stock dropped 5% on that news.

 

Wow. Just wow.

post #39 of 180
Quote:
Originally Posted by island hermit View Post
 

Well, Tim, it looks like Wall Street is looking for your answer. This was definitely not it.

 

It looks like your margin of error is getting slimmer.

 

Apple provides a range for earnings and they beat the middle of that range. The analysts are jackasses. If you could pick up an undervalued stock at a bargain basement price by badmouthing and floating bad data, would you do the same? That's a very large incentive to poison the well and pick up AAPL at a discount.

 

Quote:

Apple provided the following guidance for its fiscal 2014 first quarter:

  • revenue between $55 billion and $58 billion (they posted $57.6 Bn ffs!)

 

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #40 of 180
Did Apple miss its expectations? Nope. Did it "miss" analysts wild guesses? I guess. So let me get this straight, stock holders would rather listen to outsiders than insiders. Ok.
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