Apple Reports Monster Q1 Earnings and Sales


Apple has reported another blowout quarter. They basically crushed analysts expectations.

The stock was briefly halted as these numbers were reported. After the halt, Apple began trading with tremendous volume, briefly propelling to all time highs.  Bad news for all those who short sold on the news of Jobs’ medical leave of absence.

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Apple CEO Steve Jobs. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

Here’s the Q1 Breakdown:
Revenue: 26.74 Billion vs an expected 24.43 billion.
EPS: $6.43 vs an expected $5.38.
iPhone Shipments: 16.24 million vs an expected 15.5 billion, an increase of 86 percent.
iPad Shipments: 7.33 million an expected 6.2 million.
Mac Shipments: 4.13 million vs an expected 4.3 million, an increase of 23 percent.
iPod Shipments: 19.45 million vs an expected 20.3million
Gross Margins: 38.5%vs an expected  27.6%
Guidance: 22.78 billion in revenue and $4.90 EPS for the March quarter.

Their guidance of 22.78 billion is huge.  Apple is known for low-balling their forward guidance.  Wall street was expecting guidance of only $20.8 billion. If Apple really is that optimistic, we can expect their Q2 revenue to be much higher.

Highlights from the conference call:

  • 88 percent of the Fortune 100 companies have deployed the iPhone.
  • Over 80 percent of the Fortune 100 companies have or will deploy the iPad.
  • 62 percent of Apple’s revenue was generated outside of the US
  • Mac computer sales have been growing for the past 19 quarters. There is still enormous opportunity for growth due to its low market share.
  • About half of all Macs sold were to customers who have never owned a Mac.

Tim Cook optimistically stated:
“In my view, Apple is doing its best work ever. We are all very happy with the product pipeline. The team here has an unparalleled breadth and depth of talent and innovation that Steve has driven in the company, and excellence has become a habit. And so we feel very, very confident about the future of the company.”

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