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Posted on 07/21/2008 10:20:41 PM PDT by Swordmaker
Apple today announced financial results for its fiscal 2008 third quarter ended June 28, 2008. The Company posted revenue of $7.46 billion and net quarterly profit of $1.07 billion, or $1.19 per diluted share. These results compare to revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share, in the year-ago quarter. Gross margin was 34.8 percent, down from 36.9 percent in the year-ago quarter. International sales accounted for 42 percent of the quarter's revenue.
Apple shipped 2,496,000 Macs during the quarter, representing 41 percent unit growth and 43 percent revenue growth over the year-ago quarter. The Company sold 11,011,000 iPods during the quarter, representing 12 percent unit growth and seven percent revenue growth over the year-ago quarter. Quarterly iPhone units sold were 717,000 compared to 270,000 in the year-ago-quarter (166% year/year).
"We're proud to report the best June quarter for both revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO, in the press release. "We set a new record for Mac sales, we think we have a real winner with our new iPhone 3G, and we're busy finishing several more wonderful new products to launch in the coming months."
"We're extremely pleased with the growth of our business and the generation of almost $5.4 billion in cash in the first three quarters of fiscal 2008," said Peter Oppenheimer, Apple's CFO, in the press release. "Looking ahead to the fourth quarter of fiscal 2008, we expect revenue of about $7.8 billion and earnings per diluted share of about $1.00."
Apple will provide live streaming of its Q3 2008 financial results conference call utilizing QuickTime, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2pm PDT/5pm EDT on Monday, July 21, 2008 at www.apple.com/quicktime/qtv/earningsq308/ and will also be available for replay.
MacDailyNews Note: According to Thompson Financial’s survey of analysts, Apple was expected to report revenue of $7.4 billion, net income of $972.6 million, or $1.08 per diluted share.
In after-hours trading currently, Apple (AAPL) is down $6.93 (-4.17%) to $159.36 on volume of 4,002,416 shares.
Apple's recent earnings and unit sales information:
2008:
2007:
2006:
2005:
2004:
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Apple stock never seems to like earnings. All it takes is one small disappointment and the stock sinks.
Stock down about $20 after hours.
Nice work, Mr. Jobs.
They can’t finish those new products soon enough. Especially since it appears one of those products is a new MacBook Pro. I will be adding to the sales of whatever quarter those are introduced in.
Any stock, heck, the whole of the stock market isn’t about what has been announced today for earnings. The market is trying to discount what will be in two quarters.
Apple gave mushy guidance for Q4, and on the conference call, a question about Jobs’ health was brushed off.
The expectations for Apple had been set way, way, way too high. P/E of about 35, price/sales of over 5, price/book over 8. Very rich indeed. The only way the stock would not have sold off (especially in this market) was to have a really strong guidance for the next two to three quarters.
The issue of Jobs’ health is a tricky one. While the company isn’t about to roll over and sink without Jobs, we can all look at those years when Jobs was gone (and off at NeXT or some other venture) and Apple just floundered, with really weak vision as to where they wanted to go with products.
Monday, July 21, 2008 - 05:59 PM EDT
Apple shares tumbled in after hours trading ($156.16,-10.13, -6.09%) as the company offered guidance of $1.00 EPS on $7.8 billion in revenue. First Call analysts' consensus estimates are for $1.24 EPS on $8.32 Billion in revenue.
Apple is notorious for providing conservative guidance.
Apple today posted Q308 revenue of $7.46 billion and net quarterly profit of $1.07 billion, or $1.19 per diluted share versus analysts' consensus expectations of $1.08 a share on revenue of $7.4 billion. These results compare to revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share, in the year-ago quarter.
Apple always gives hyper-conservative guidance. They know the value of “underpromise, overdeliver.”
Unfortunately, most of Wall Street are idiots.
The tendency to issue conservative guidance comes about because of new rules that hold corporate officers responsible if the company does not meet the guidance. To avoid stockholder suits when, for reasons beyond their control, a company fails to meet reasonable guidance, the latest tendency is to be very conservative. Apple, being the target of numerous suits, is particularly conservative in its guidance historically.
If Steve dies....God forbid.
Apple will crash.
I would be very careful. Traders I know claim he ain’t well.
Thats because to continue the apperance of always beating estimates and blowout quarters, they always sandbag their forward guidance for the next quarter. They might as well name this move after Steve Jobs.
This time it wasn’t a smart thing to do because of the recent pictures of Jobs looking very sickly which has got apple worshipers and investors spooked. I can think of no one besides maybe Warren Buffett who is more critical to the apperance of the culture of a company and worshiped as a deity than Steve Jobs.
Sometime stock trading makes no sense to me.
“Unfortunately, most of Wall Street are idiots.”
Yep. Or crooks. GS upgrades to unload inventory and downgrades to beef up holdings. For the “analyst” to talk to the investment bankers is prohibited (Spitzer) but there is no rule against analysts talking to the position traders or PMs.
Oh yea — absolutely. Apple has learned, the hard way, at the hands of jerks like Bill Lerach:
BTW — dunno if you’ve been paying attention to the news, but Lerach is going to prison. Here’s the sordid tale of how Milberg Weiss Bershad was brought down:
http://money.cnn.com/magazines/fortune/fortune_archive/2006/11/13/8393127/index.htm
As of April of this year, Lerach has reported to prison to serve his time.
BTW — I’m sure you’ve already guessed this, but the pond-scum lawyers mentioned herein are BIG DNC contributors. Taking them out of action benefits the republic in two ways. The day I heard about their downfall, I was grinning from ear to ear all day.
Back to the original thread: Apple was “priced for perfection.” I didn’t understand why people were pricing AAPL way the heck up there, and I half expected Apple to talk down Q3/Q4, because, well, that’s what they do. Those quarters are usually not the fire-breathing quarters for Apple.
“Sometime stock trading makes no sense to me.”
I find it amazingly simple.
” they always sandbag their forward guidance for the next quarter. They might as well name this move after Steve Jobs.”
Not really. This is an old trick. Since I have been trading stocks I have always found companies with this MO. When you find one it is a gold mine.
#7 - Good one.
Old WS axiom... Buy on the rumor...Sell on the news
I don’t know where the other 2,495,999 went, but I do know where 1 of them went. :)
And next year I will buy 1 more.
Yeah, then after a horrible start the stock recovers most of what it lost after hours and at opening.
Go figure.
Where’s the outrage at all these billions in profit they’re making of all us poor whittle consumers?
Stock went down due to concerns about Job’s health, and guidance about lower margins next quarter.
The real question is what is the mystery product they talk about which will impact earnings so strongly?
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