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Apple reports $565M profit on revenues of $5.75B

post #1 of 27
Thread Starter 
Apple today announced financial results for its fiscal 2006 first quarter ended December 31, 2005, reporting the highest revenue and earnings in the Company's history.

Apple posted revenue of $5.75 billion and a net quarterly profit of $565 million, or $.65 per diluted share, in this 14-week quarter. These results compare to revenue of $3.49 billion and a net profit of $295 million, or $.35 per diluted share, in the year-ago quarter. Gross margin was 27.2 percent, down from 28.5 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter's revenue.

Apple shipped 1,254,000 Macintosh computers and 14,043,000 iPods during the quarter, representing 20 percent growth in Macs and 207 percent growth in iPods over the year-ago quarter.

"We are thrilled to report the best quarter in Apple's history," said Steve Jobs, Apple's CEO. "Two highlights of an incredible quarter were selling 14 million iPods and getting ready to launch our new Macs with Intel processors five to six months ahead of expectations. We are working on more wonderful products for 2006, and I can't wait to see what our customers think of them."

"We're very pleased to report year-over-year revenue growth of 65 percent and net income that was nearly twice the year-ago level," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the second quarter of fiscal 2006, we expect revenue of about $4.3 billion. We expect GAAP earnings per diluted share of about $.38, including an estimated $.04 per share expense impact from non-cash stock-based compensation, translating to non-GAAP EPS of about $.42."

Apple will provide live streaming of its Q1 2006 financial results conference call utilizing QuickTime, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PST on Wednesday January 18, 2006 at this link and will also be available for replay.

AppleInsider will provide its usual coverage.
post #2 of 27
The revenue was good. It really did have to come above the $5.7 billion he said earlier, rather than 5.697, or some such thing.

Earnings was a bit lower than I had hoped. I was looking for a bit closer to $600 million. But, still very good. Just not at the whisper number. The lower gross margin from so many iPod sales was responsible for that.

I'm just surprised at the figure given for this quarter - $4.3 billion. I was expecting around $4.75 billion.

I imagine that they are expecting lower PPC sales, and that the x86 sales aren't expected to fully compensate. Lower estimates for iPod sales should come out as well.

But, we've been surprised before. Apple has been conservative with their estimates.
post #3 of 27
ouch - down over 8% after hours so far.
post #4 of 27
Quote:
Over priced or not, one thing about Apple's stock price is that there is significant potential for wild price swings up and down.

So buckle up!

http://forums.appleinsider.com/showt...threadid=60301

Rollercoaster Weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

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post #5 of 27
Quote:
Originally posted by tink
http://forums.appleinsider.com/showt...threadid=60301

Rollercoaster Weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

now only 4% off - rollercoaster indeed. It'll probably be up by tomorrow
post #6 of 27

All my life, I always wanted to be somebody. Now I see that I should have been more specific.
- Lily Tomlin
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All my life, I always wanted to be somebody. Now I see that I should have been more specific.
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post #7 of 27
Reuters reported that Oppenheimer said there was a "pause" in Mac sales due to the Intel transition.

https://us.etrade.com/e/t/invest/Sto...sUSCompanyNews


The market will seize on that bit of bad news and run the stock down.

I smell buying opportunity!!!
post #8 of 27
Good news anyway. This company rocks and makes me
a happy camper?
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post #9 of 27
I'm not sure the profit number is correct. I haven't checked on Apple's site yet, but I thought I heard them say $595 during the call a little while ago. If so, that's more in line with what I expected.

EDIT: Ok, I checked. $565 is net. $595 doesn't include cash-in.
post #10 of 27
profit taking.

expect over 100 this year.
post #11 of 27
Quote:
Originally posted by melgross
The revenue was good. It really did have to come above the $5.7 billion he said earlier, rather than 5.697, or some such thing.

Earnings was a bit lower than I had hoped. I was looking for a bit closer to $600 million. But, still very good. Just not at the whisper number. The lower gross margin from so many iPod sales was responsible for that.

I'm just surprised at the figure given for this quarter - $4.3 billion. I was expecting around $4.75 billion.

I imagine that they are expecting lower PPC sales, and that the x86 sales aren't expected to fully compensate. Lower estimates for iPod sales should come out as well.

But, we've been surprised before. Apple has been conservative with their estimates.

Hoping for a bit closer to $600 Million in net profit? Was that a fantasy of yours? How you think it will "adjust" the stock value on the day of reports is overshadowed by those that take profits.

When the stock moves above 90 and touches 100 they'll split it. Then you can sell some of your 20,000 shares and feel less pessimistic.
post #12 of 27
Quote:
Originally posted by mdriftmeyer
Hoping for a bit closer to $600 Million in net profit? Was that a fantasy of yours? How you think it will "adjust" the stock value on the day of reports is overshadowed by those that take profits.

When the stock moves above 90 and touches 100 they'll split it. Then you can sell some of your 20,000 shares and feel less pessimistic.

Where the heck do you get the idea he's being pessimistic?

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #13 of 27
Quote:
Originally posted by mdriftmeyer
Hoping for a bit closer to $600 Million in net profit? Was that a fantasy of yours? How you think it will "adjust" the stock value on the day of reports is overshadowed by those that take profits.

When the stock moves above 90 and touches 100 they'll split it. Then you can sell some of your 20,000 shares and feel less pessimistic.

Excuse me?

Can you give me reasons why Apple couldn't achieve the close to 12% net it has been achieving? 12% of $5.75 billion is $590 million, just $25 million more.

If the mix of 5G, Nano, Shuffle, and the various computer models, software, and accessory sales from their stores, and web site, as well as the 49% of their sales coming from their own direct sales channel had been ever so slightly different, they could very well have done it easily.

Analysts estimates were for 1.4 million Mac sold this quarter, instead of the 1.254 million actually sold. That would have done it handily. I didn't expect that many cpu sales, but I expected it to be above 1.3 million, with less iPods sold.
post #14 of 27
Quote:
Originally posted by melgross
I'm just surprised at the figure given for this quarter - $4.3 billion. I was expecting around $4.75 billion.

I imagine that they are expecting lower PPC sales, and that the x86 sales aren't expected to fully compensate. Lower estimates for iPod sales should come out as well.

But, we've been surprised before. Apple has been conservative with their estimates.

Yeah, that seems to indicate to me intel minis and ibooks won't be out until the beginning of Q2, and they're assuming that sales for those will go in the crapper, which seems logical enough to me.

I suppose things are bound to be a little choppy during the transition.
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post #15 of 27
Quote:
Originally posted by Flounder
Yeah, that seems to indicate to me intel minis and ibooks won't be out until the beginning of Q2, and they're assuming that sales for those will go in the crapper, which seems logical enough to me.

I suppose things are bound to be a little choppy during the transition.

I think we'll get a better idea shortly after the end of the month.
post #16 of 27
$8.7 billion in the bank

I would imagine that the stock will split if it goes and stays in the 90s.
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post #17 of 27
I agree that the current downturn is a buying opportunity. Time to buy some more shares, even though its still priced high!

Also, if it does reach 90 and hover I'd expect another split. As I just mentioned, the price is so high it starts to exclude investors. Besides, I wouldn't mind my existing shares splitting for a fourth time. 8)
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post #18 of 27
A split should never be a reason to buy a stock. and people have to understand that two shares at $45 are the same as one at $90.

Also, while it split around $80 last time, the time before that it was around $145 or so, from what I remember.
post #19 of 27
Quote:
Originally posted by Xool
I agree that the current downturn is a buying opportunity. Time to buy some more shares, even though its still priced high!

Also, if it does reach 90 and hover I'd expect another split. As I just mentioned, the price is so high it starts to exclude investors. Besides, I wouldn't mind my existing shares splitting for a fourth time. 8)


I think it's too high to buy at this time. If it encounters a major drop, then I'd buy more... but I bought so low originally anyway, it just doesn't make sense for me.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #20 of 27
If it opens under $80 tomorrow, it might be a buy. It depends on the market though. It's been dragged down the past three days. The tech sector has taken a hit with the reports from some industry leaders. It tarnishes everybody.
post #21 of 27
Buying opportunity.

Got in today at 80.
post #22 of 27
Here is some info that buyers might find helpful. This guy Troy Wolverton at Thestreet.com is generally negative on Apple stock (not the products) most of the time and this article is not an exception. However, he makes some good points about some troubling things Apple may face this year.

http://www.thestreet.com/tech/gamesa.../10262751.html

Just an FYI
post #23 of 27
Quote:
Originally posted by WelshDog
Here is some info that buyers might find helpful. This guy Troy Wolverton at Thestreet.com is generally negative on Apple stock (not the products) most of the time and this article is not an exception. However, he makes some good points about some troubling things Apple may face this year.

http://www.thestreet.com/tech/gamesa.../10262751.html

Just an FYI

No - he is totally off base. Apple has very conservative estimates at the beginning of each quarter, and dissapoints analysts as a result, but the end result at the end of the quarter is not dissapointing.
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post #24 of 27
Quote:
Originally posted by e1618978
No - he is totally off base. Apple has very conservative estimates at the beginning of each quarter, and dissapoints analysts as a result, but the end result at the end of the quarter is not dissapointing.

Yes, he is off base to a certain extent, but he still says that Apple will reach $100 end of this year which is in line with others.

I think that it will reach that number much earlier.

But don't tell anyone I said that.
post #25 of 27
it's at 77 and dropping. I have arbitrarily decided 70 will be my trigger. thoughts?

BUY?

why is it tanking?
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post #26 of 27
Quote:
Originally posted by Aquatic
it's at 77 and dropping. I have arbitrarily decided 70 will be my trigger. thoughts?

BUY?

why is it tanking?

Well for starters the market is down - a lot. Tech is also down - a lot.
Investors may have wisely decided to take their profits after hearing a less exuberant forecast for the next quarter.

Keep an eye on it. $70 may seem to be arbitrary, but who knows?

Watch Mad Money on CNBC and see what Cramer has to say about it.

EDIT: Oh yeah, oil hit $68 a barrel. That makes people nervous.
post #27 of 27
I think that it is worth about $40/share.
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