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

Posted:
in AAPL Investors edited April 2014
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.
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Comments

  • Reply 1 of 62
    Apple is doomed! They missed on tablets!
  • Reply 2 of 62
    apple ][apple ][ Posts: 8,360member

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

  • Reply 3 of 62
    tmaytmay Posts: 3,464member
    Yet another $10B for the cash pile.
  • Reply 4 of 62

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

  • Reply 5 of 62
    tallest skiltallest skil Posts: 43,399member

    Anyone else making $10.2 billion in profit? Anyone?

  • Reply 6 of 62
    asdasdasdasd Posts: 5,233member
    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.
  • Reply 7 of 62
    e1618978e1618978 Posts: 6,073member

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

  • Reply 8 of 62

    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.

  • Reply 9 of 62
    gwmacgwmac Posts: 1,796member

    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

  • Reply 10 of 62
    asdasdasdasd Posts: 5,233member
    Except for iPads it was a blow out quarter. Be interesting to see what they say about tablets.

    But fairly impressive.
  • Reply 11 of 62
    snovasnova Posts: 1,281member

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

  • Reply 12 of 62
    shahhet2shahhet2 Posts: 127member
    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 :)

  • Reply 13 of 62
    disturbiadisturbia Posts: 563member

    Well done, Apple. Well done.

  • Reply 14 of 62
    gwmacgwmac Posts: 1,796member

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

     


     

  • Reply 15 of 62
    shahhet2shahhet2 Posts: 127member
    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.)

  • Reply 16 of 62
    asdasdasdasd Posts: 5,233member
    snova wrote: »
    how do we explain increased gross margin?  Shift to more expensive iPads?

    Probably the collapse in iPod sales.
  • Reply 17 of 62
    shahhet2shahhet2 Posts: 127member
    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.

  • Reply 18 of 62
    lkrupplkrupp Posts: 6,710member

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

  • Reply 19 of 62
    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.
  • Reply 19 of 62
    macxpressmacxpress Posts: 4,761member

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

     

    /s

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