Apple on Monday reported its fourth quarter results, posting revenue of $37.5 billion and a profit of $7.5 billion. This compares to revenue of $36 billion and net profit of $8.2 billion in the year-ago quarter.
Apple said it sold 33.8 million iPhones, a record for the September quarter, compared to 26.9 million in the year-ago quarter. The company also sold 14.1 million iPads during the quarter, compared to 14 million in the year-ago quarter, and it sold 4.6 million Macs, compared to 4.9 million in the year-ago quarter.
The company said international sales accounted for 60 percent of the quarter’s revenue.
Apple’s Board of Directors declared a cash dividend of $3.05 per share of the company’s common stock. The dividend is payable on November 14, 2013, to shareholders of record as of the close of business on November 11, 2013.
Lower margins, but amazing numbers. Here come the nay sayers.
Doomed.
Stock instantly drops $20…way to sell the best company in modern history sheep.
Sell! Sell!
Check the projections for the holiday quarter….
Revenue: $55B to $58B
Margin: 36.5% to 37.5%
Taxes: 26.25%
On the high end:
$58B * 37.5% = $21.75B – $5.71B taxes = $16B
On the low end:
$55B * 36.5% = $20.1B – $5.27B taxes = $14.8B
The question will be how those compare to last year’s holiday quarter.
Nay, dooooooooooooomed!
I appreciate the post, but I just want to address your math, the operating expenses come before taxes, not after, therefore:
–High–
58B * 37.5% = 21.75B – 4.5B (Op Exp) + .2M
= 17.25 (EBIT) * (1-.26.25%) = 12.72B Net Profit
–Low–
55B * 36.5% = 20.075B – 4.5 (Op Exp) + .2M
= 15.775 (EBIT) * (1-26.26%) = 11.63B
Here’s the rub – They did $13.08B in Q1FY2013
(This is why WS is freaking out)
But….
The Q1FY2013 earnings were $13.81 Per Share
Now, Q1FY2014 earnings will be approx (High) $14.13, because of share repurchases.
So if the Earning per share are up – Why is wall street still freaking out? Because the gross margins appear to declining:
37.5 % (Target Q1FY2014)
43.8 % (FY2012)
40.5 % (FY2011)
39.4 % (FY2010)
40.1 % (FY2009)
But this STILL doesn’t tell the whole story, why? Because this is a also a company that has grown, REALLY grown:
170B (FY2013)
156B (FY2012)
108B (FY2011)
65.2B (FY2010)
42.9B (FY2009)
This company has grown more than 4 times in the last 4 years, YET, they have maintained margin within a few percentage points. Put this in context – They have created the revenue equivalent of top 50 Fortune 500 firm 3 times in the last three years, and they have maintained margin within a few percentage points.
DOOOOOOOOOOMED.
Just to complete this thought: Let’s look at the margins at the other top 10 Fortune 500 companies:
– Walmart: 24.9% Gross Margin
– Exxon Mobile: 35%
– Chevron: 32%
– Phillips: 13.66%
– Berkshire Hathaway: 16.67%
– GM: 7.1% (And they have a P/E near Apple’s – WTF?)
– GE: 39.3%
– Valero: 8.5%
– Ford: 13.8%
I just don’t get it….
It actually went up to 540 in the first few seconds. Then went down to 503.
I think at this point, no matter the news, people are afraid of a sell-off.