## Apple reports \$7.5 billion fourth quarter profit

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.

• Tony Santos

Lower margins, but amazing numbers. Here come the nay sayers.

• DocRoss

Doomed.

• initialsBB

Nay, dooooooooooooomed!

Stock instantly drops \$20…way to sell the best company in modern history sheep.

• Demosthese

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.

• Jeff

Sell! Sell!

• BC2009

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

• lkalliance

The question will be how those compare to last year’s holiday quarter.

• ForThought

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.

• ForThought

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….

• tylernol

DOOOOOOOOOOMED.