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Apple beats estimates with $10.2B in profit on sales of 43.7M iPhones, 16.3M iPads

post #1 of 63
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Apple on Wednesday exceeded market expectations for its second quarter of fiscal 2014, posting $45.6 billion in revenue and quarterly net profit of $10.2 billion, or $11.62 per diluted share.




Apple sold 43.7 million iPhones in the three-month period, generally beating what analysts had projected. iPad sales came on the low side, however, at just 16.3 million units.

Apple also saw shipments of 4.1 million Macs in the March period, and 2.7 million iPods. Gross margins were 39.3 percent, an improvement from 37.5 percent in the year-ago quarter.

"We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services," said Tim Cook, Apple's CEO. "We're eagerly looking forward to introducing more new products and services that only Apple could bring to market."
"We're eagerly looking forward to introducing more new products and services that only Apple could bring to market." - Apple Chief Executive Tim Cook

Apple's second quarter of fiscal 2014 compares to revenue of $43.6 billion in the same period a year ago, when the company earned $9.5 billion in net profit, or $10.09 per diluted share. Gross margins were also lower, at 37.5 percent, for the same 2013 quarter.

Looking forward to its fiscal 2014 third quarter, Apple has guided revenue to be between $36 billion and $38 billion, with gross margins expected to be between 37 percent and 38 percent. Apple has forecast operating expenses between $4.4 billion and $4.5 billion, other income of $200 million, and a tax rate of 26.1 percent.

"We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter," Apple Chief Financial Officer Peter Oppenheimer said. "That brings cumulative payments under our capital return program to $66 billion."

Analysts generally expected Apple to report sales of $43.6 billion for the quarter, which spans the months of January through March. Average analyst estimates for earnings per share were $10.15, according to Wells Fargo Securities.

It was in the same quarter a year ago that Apple saw its profits fall for the first time in a decade. Though the company had posted record second-quarter sales, its profits were off about 18 percent from the same frame in 2012.
post #2 of 63
Apple is doomed! They missed on tablets!
post #3 of 63

I wonder where it's going to open up at again. Who knows, but I'm guessing around $540-$550.

post #4 of 63
Yet another $10B for the cash pile.
post #5 of 63

Ignore that they beat on pretty much everything else, are increasing buybacks, increasing dividend, and splitting the stock.

post #6 of 63

Anyone else making $10.2 billion in profit? Anyone?

post #7 of 63
The iPad was a huge yoy dip. But everything else was rosy. Services had greater revenue than iPods or macs.

But. iPads. Not good. Might explain the move to a phablet.
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post #8 of 63

Wow - higher earnings than the highest estimate, higher iPhone sales than the highest estimate.

45 2a3 300b 211 845 833
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post #9 of 63

Nothing really to complain about for this quarter (other than iPad sales). Margin is up. Cash pile is growing.

 

I just wish Apple could find a phone line-up that would keep them above 50 million units at all times.

 

Not sure what to make of the iPad shortfall. That doesn't seem to bode well.

Hmmmmmm...
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Hmmmmmm...
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post #10 of 63

Just looked at after hours, up $40. Watch the idiot analysts try and squirm out now and say that is not what they said or meant

post #11 of 63
Except for iPads it was a blow out quarter. Be interesting to see what they say about tablets.

But fairly impressive.
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post #12 of 63

how do we explain increased gross margin?  Shift to more expensive iPads?

"Building for the future?! They should be running around reacting to the present!" -John Moltz
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"Building for the future?! They should be running around reacting to the present!" -John Moltz
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post #13 of 63
Quote:
Originally Posted by Tallest Skil View Post
 

Anyone else making $10.2 billion in profit? Anyone?

Anyone has bigger market cap then Apple, Anyone :), 

post #14 of 63

Well done, Apple. Well done.

....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

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....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

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post #15 of 63

If Cook talks about new product categories on CC, add another $20 plus another $10 short-covering; so by Friday close $80 upside potential.

 
 
post #16 of 63
Quote:
Originally Posted by snova View Post
 

how do we explain increased gross margin?  Shift to more expensive iPads?

5S has higher gross margin. iPads have lower margin. Higher sell for iPhones (5S) and lower sell of iPad results in higher gross margin. (Addition to that services have much higher margin, which obviously grows much better then HW portion itself.)

post #17 of 63
Quote:
Originally Posted by snova View Post

how do we explain increased gross margin?  Shift to more expensive iPads?

Probably the collapse in iPod sales.
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post #18 of 63
Quote:
Originally Posted by gwmac View Post
 

If Cook talks about new product categories on CC, add another $20 plus another $10 short-covering; so by Friday close $80 upside potential.

 
 

No need to get excited too fast, Final results will be in outlook call as always in past years. I hope they lift outlook.

post #19 of 63

AAPL up 8% in after hours trading ($565). +$40 when trading was halted.

post #20 of 63
The new product/category that Apple will announce is Apple-Logo reusable water bottles for $1.29 ...

Not bad for a company who's stock [will be] selling for ~$70-$80 a share.
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"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
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post #21 of 63

I think Tim Cook needs to be fired...yup, Apple is doomed!

 

/s

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Mac Mini (Mid 2011) 2.5 GHz Core i5

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AMD Radeon HD 6630M 256 MB

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post #22 of 63
And some idiot on MacRumors is suggesting the only reason the stock is up after hours is because of the buybacks, dividend increase and stock split. 1rolleyes.gif
post #23 of 63

iPhones up 17% , iPad down 16%, Macs up 3.8%,  for Q2 FY14 vs Q2 F13.  

"Building for the future?! They should be running around reacting to the present!" -John Moltz
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"Building for the future?! They should be running around reacting to the present!" -John Moltz
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post #24 of 63

How many people (I am certainly one) skipped on replacing their original/iPad 2 with a new one this past year because of the lack of Touch ID? If my next phone is going to have it then I want it on my iPad too. I can't imagine I was alone on that.

post #25 of 63

I really do try watching my language online.  However I will break that for a moment..

**** You Analysts, **** You iHaters.  **** You Media.  

Each and every time they post the typical hate and doom fabrications, they end up looking like idiots, and then try squirming their way out so as not to look like the idiots that they are.  

Congrats Apple.  Tim Cook plays those Wall Street a$$hats like the tools they are.

post #26 of 63
When Apple misses by one billion their stock tanks. So by making one billion plus over expectations is the stock going to soar?
post #27 of 63
Quote:
Originally Posted by EricTheHalfBee View Post

When Apple misses by one billion their stock tanks. So by making one billion plus over expectations is the stock going to soar?

For that outlook has to be good as well. They reduced 1-2B in revenue from next quarter outlook at the same time.

Some of the gain in stock price is due to Stock split, buyback and increased dividend.

post #28 of 63
Doomed! I bet the analysts will focus on the iPad numbers over everything else.
post #29 of 63
So far Tim sounds much better on this call than he did last quarter. We'll see how he is during the Q&A but so far I like what I'm hearing. Very much in command, very few pauses or stumbling over words. Go Tim!
post #30 of 63
Quote:
Originally Posted by shahhet2 View Post
 

For that outlook has to be good as well. They reduced 1-2B in revenue from next quarter outlook at the same time.

Some of the gain in stock price is due to Stock split, buyback and increased dividend.

 

Buyback and dividend is a double bump.  Apple is both growth stock and a income stock.   double dip investing.   Stock Houses see a demand from the Joe Investor to pick up 10 shares now at $800 every quarter in their personal IRA, as well as the big mutual funds stuffing their 'growth and income' mutual funds with AAPL.

post #31 of 63
Who else is able to actually SELL 16 million tablets a quarter?
post #32 of 63
I think the dip in iPads was to be expected. Everyone already has one! They've been selling like hotcakes since they were introduced, and the newer markets that Apple has entered are more budget conscious, so there wouldn't be tremendous growth from them for a higher-priced item. Way to go Apple! You continue to impress on the growth front, even with very conservative product upgrades and introductions.
post #33 of 63
Quote:
Originally Posted by sflocal View Post
 

I really do try watching my language online.  However I will break that for a moment..

**** You Analysts, **** You iHaters.  **** You Media.  

Each and every time they post the typical hate and doom fabrications, they end up looking like idiots, and then try squirming their way out so as not to look like the idiots that they are.  

Congrats Apple.  Tim Cook plays those Wall Street a$$hats like the tools they are.

 

He learned from the best, Steven P. Jobs.

post #34 of 63
There you go Cramer!!! let see what he says tonight.. fast money people ate pissed..
post #35 of 63
The big news is Angela Ahrendts joining the Apple team next week. BOOM !
post #36 of 63

After hours trading is now at $565.

post #37 of 63
Quote:
Originally Posted by Quadra 610 View Post

Who else is able to actually SELL 16 million tablets a quarter?

Christ. They shipped 16M. If there is any conference call which would end the AI meme that Apple reports sales as their headline number not shipments this would, you would think, be it.

Half the call was explaining the difference between he headline sales ( to channel aka shipments ) vs more favourable sales to customers ( aka sell through).
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post #38 of 63
Quote:
Originally Posted by mdriftmeyer View Post

He learned from the best, Steven P. Jobs.

He did sound as confident as Jobs. Not that Steve turned up to these calls that often.
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post #39 of 63
Quote:
Originally Posted by shahhet2 View Post
 
Quote:
Originally Posted by snova View Post
 

how do we explain increased gross margin?  Shift to more expensive iPads?

5S has higher gross margin. iPads have lower margin. Higher sell for iPhones (5S) and lower sell of iPad results in higher gross margin. (Addition to that services have much higher margin, which obviously grows much better then HW portion itself.)

hmm..  iPhone ESP went down however.  seem there might be a different explanation.  

"Building for the future?! They should be running around reacting to the present!" -John Moltz
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"Building for the future?! They should be running around reacting to the present!" -John Moltz
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post #40 of 63
Quote:
Originally Posted by snova View Post

hmm..  iPhone ESP went down however.  seem there might be a different explanation.  

iPods.
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