Apple beats estimates with $10.2B in profit on sales of 43.7M iPhones, 16.3M iPads
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."
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.
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.
Comments
I wonder where it's going to open up at again. Who knows, but I'm guessing around $540-$550.
Ignore that they beat on pretty much everything else, are increasing buybacks, increasing dividend, and splitting the stock.
Anyone else making $10.2 billion in profit? Anyone?
But. iPads. Not good. Might explain the move to a phablet.
Wow - higher earnings than the highest estimate, higher iPhone sales than the highest estimate.
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.
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
But fairly impressive.
how do we explain increased gross margin? Shift to more expensive iPads?
Anyone else making $10.2 billion in profit? Anyone?
Anyone has bigger market cap then Apple, Anyone
,
Well done, Apple. Well done.
If Cook talks about new product categories on CC, add another $20 plus another $10 short-covering; so by Friday close $80 upside potential.
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.)
Probably the collapse in iPod sales.
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.
AAPL up 8% in after hours trading ($565). +$40 when trading was halted.
Not bad for a company who's stock [will be] selling for ~$70-$80 a share.
I think Tim Cook needs to be fired...yup, Apple is doomed!
/s