Apple reports earnings of $7.5B on sales of 33.8M iPhones, 14.1M iPads & 4.6M Macs

Posted:
in AAPL Investors edited October 2014
Apple said Monday that fourth-quarter profits slipped roughly 8.5 percent to $7.5 billion, or $8.26 per diluted share, on revenues of $37.5 billion -- better than most Wall Street analysts had been anticipating.

iPhone 5 with iOS 7


The results compare to revenue of $36 billion and net profit of $8.2 billion, or $8.67 per diluted share, in the year-ago quarter. Gross margin came in at 37 percent compared to 40 percent in the year-ago quarter. International sales accounted for 60 percent of the quarter's revenue.

Apple sold 33.8 million iPhones, a record for the September quarter, compared to 26.9 million in the year-ago quarter. It also sold 14.1 million iPads during the quarter, compared to 14 million in the year-ago quarter. Mac sales came in at 4.6 million, down slight from 4.9 million in the year-ago quarter.

"We're pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones," said Apple Chief Executive Tim Cook. "We're excited to go into the holidays with our new iPhone 5c and iPhone 5s, iOS 7, the new iPad mini with Retina Display and the incredibly thin and light iPad Air, new MacBook Pros, the radical new Mac Pro, OS X Mavericks and the next generation iWork and iLife apps for OS X and iOS."

On average, Wall Street analysts were expecting Apple to report earnings of $7.93 per share on revenue of $36.84 billion, driven largely by sales of roughy 31 million iPhones, 14.5 million iPads and 4.6 million Macs.

Apple's Board of Directors has declared a cash dividend of $3.05 per share of the Company's common stock, payable on November 14, 2013, to shareholders of record as of the close of business on November 11, 2013.

"We generated $9.9 billion in cash flow from operations and returned an additional $7.8 billion in cash to shareholders through dividends and share repurchases during the September quarter, bringing cumulative payments under our capital return program to $36 billion," added Apple Chief Financial Officer Peter Oppenheimer.

Apple provided the following guidance for its fiscal 2014 first quarter:
  • revenue between $55 billion and $58 billion

  • gross margin between 36.5 percent and 37.5 percent

  • operating expenses between $4.4 billion and $4.5 billion

  • other income/(expense) of $200 million

  • tax rate of 26.25 percent
Apple will provide live streaming of its Q4 2013 financial results conference call beginning at 2:00 p.m. PDT today. AppleInsider will provide full coverage.
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Comments

  • Reply 1 of 100
    andysolandysol Posts: 2,506member
    Doomed
  • Reply 2 of 100
    rogifanrogifan Posts: 10,669member
    So Apple beats estimates and yet they're down over 2% after hours supposedly because of lower margins. Yet I keep reading articles about how Apple needs cheaper iPhones and iPads. How exactly would that increase margins?
  • Reply 3 of 100
    hydrhydr Posts: 146member
    Love this marketwatch headline:
    Apple beats estimates, issues solid guidance; shares lower
  • Reply 4 of 100
    Great buying opportunity on Apple stock right now as idiots are dumping stock against very optimistic numbers.
  • Reply 5 of 100
    cash907cash907 Posts: 893member
    Wonder what Mac sales would have been like had they not delayed the rMBP refresh just for the sake of Mavericks, which is evidently causing input device lockups anyway. I, like many others, was waiting with cash in hand for the 13" refresh back in June.
  • Reply 6 of 100
    lkrupplkrupp Posts: 7,482member
    So AAPL disappoints once again? Are they still doomed? Inquiring pundits want to know.
  • Reply 7 of 100
    rogifanrogifan Posts: 10,669member
    So basically Wall Street is dumping the stock because margins are down 3% compared to the year ago quarter. And yet Amazon can have another quarter where they make no money and the stock jumps 9%. :rolleyes:
  • Reply 8 of 100
    Quote:

    Originally Posted by helicopterben View Post

     

    Lot of Bulltards all across the stock boards makes me think, this stock can tank despite the beat :err: 

     

    Its a win-win situation for bulls no matter what the stock does. If it falls, buy more :p 

     

    http://forums.appleinsider.com/t/160434/earnings-preview-apples-sept-quarter-results-are-all-about-iphone-for-wall-street


  • Reply 9 of 100
    Quote:

    Originally Posted by Rogifan View Post



    So basically Wall Street is dumping the stock because margins are down 3% compared to the year ago quarter. 

    You know this for a fact?

  • Reply 10 of 100
    quadra 610quadra 610 Posts: 6,746member

    So they managed to hit 4.6 million Mac sales after all.

     

    Egg on my face. Colour me corrected. And impressed. 

  • Reply 11 of 100
    jakebjakeb Posts: 557member

    AAPL p/e got crazy compressed before the run to $700. Same thing happening here. One day it will compress to a stupidly low level and there will be another crazy run. At least that's what I'm holding out for. 

  • Reply 12 of 100
    Quote:
    Originally Posted by Rogifan View Post



    So Apple beats estimates and yet they're down over 2% after hours supposedly because of lower margins. Yet I keep reading articles about how Apple needs cheaper iPhones and iPads. How exactly would that increase margins?

     

    They may have beat the estimates but the fact is that **profit** is down. Again. A year-over-year quarter decrease of $700 million is no joke. They need to do something to stop that decreasing **profit**. I'm surprised AAPL is only down 2%.

     

    Edit: Fixed revenue to be profit. My apologies.

  • Reply 13 of 100
    Quote:

    Originally Posted by Rogifan View Post



    So basically Wall Street is dumping the stock because margins are down 3% compared to the year ago quarter. And yet Amazon can have another quarter where they make no money and the stock jumps 9%. image

     

    Yes because AAPL is a mature company and revs don't mean as much anymore and important is on margin and how much profit they can generate. AMZN on the other hand, is all about increasing revs right now. Over the next few years, AMZN is the much better investment stock market wise.

  • Reply 14 of 100
    rogifanrogifan Posts: 10,669member
    You know this for a fact?
    No, but that's what I'm seeing on the financial live blogs.
  • Reply 14 of 100
    Quote:

    Originally Posted by NexusPhan View Post

     

     

    They may have beat the estimates but the fact is that revenue is down. Again. A year-over-year quarter decrease of $700 million is no joke. They need to do something to stop that decreasing revenue. I'm surprised AAPL is only down 2%.


    Yup. and the problem is their decreasing margins...

  • Reply 16 of 100
    rogifanrogifan Posts: 10,669member
    nexusphan wrote: »
    They may have beat the estimates but the fact is that revenue is down. Again. A year-over-year quarter decrease of $700 million is no joke. They need to do something to stop that decreasing revenue. I'm surprised AAPL is only down 2%.
    But if the estimates accounted for this and they beat the estimates I don't see why the stock would be down. Presumably this would be factored in, no?
  • Reply 17 of 100
    Quote:

    Originally Posted by NexusPhan View Post

     

     

    They may have beat the estimates but the fact is that revenue is down. Again. A year-over-year quarter decrease of $700 million is no joke. They need to do something to stop that decreasing revenue. I'm surprised AAPL is only down 2%.


    Is lying fun?  They increased revenues from $36 billion to $37.5 billion, an increase of 4%.  What are you talking about?  

  • Reply 18 of 100
    Quote:

    Originally Posted by Tony Stark View Post

     

    Yup. and the problem is their decreasing margins...


     

     Margin is not gonna be an easy fix for Apple. They already have some of the highest selling prices and lowest per unit cost in the industry. Already at some serious volumes and have already flexed some muscle over their suppliers. I'm sure some much smarter than I people over at Apple are all over this. I don't think Apple is as stubborn as they appear to be to the public.

  • Reply 19 of 100
    This is all programmed trading. It does seem that Apple stocks always tanks after they report their earnings. Why, don't know. But, if I were programming a auto-trading application, I'd take my profits in Apple, as the stocks decrease (since I know they will), then buy them back later for less than I sold them for.
  • Reply 20 of 100
    rogifanrogifan Posts: 10,669member
    tony stark wrote: »
    Yes because AAPL is a mature company and revs don't mean as much anymore and important is on margin and how much profit they can generate. AMZN on the other hand, is all about increasing revs right now. Over the next few years, AMZN is the much better investment stock market wise.

    Ok how many quarters and years now have we heard the same story about Amazon? Every quarter they post another loss and all the pundits excuse it away saying its about future profits as if Amazon can just flip a switch and the profit spigot will magically start flowing. It's BS.
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