Apple smashes Street with revenue of $45.65 billion in Q214

MacDailyNews ^ | Wednesday, April 23, 2014 · 4:33 pm

[Swordmaker]

Apple today announced financial results for its fiscal 2014 second quarter ended March 29, 2014. The Company posted quarterly revenue of $45.6 billion and quarterly net profit of $10.2 billion, or $11.62 per diluted share. These results compare to revenue of $43.6 billion and net profit of $9.5 billion, or $10.09 per diluted share, in the year-ago quarter. Gross margin was 39.3% compared to 37.5% in the year-ago quarter. International sales accounted for 66% of the quarter’s revenue. “We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO, in a staement. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”

“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,” said Peter Oppenheimer, Apple’s CFO, in a statement. “That brings cumulative payments under our capital return program to $66 billion.”

• iPhone: 43.719 million units, $26.064 billion revenue
• iPad: 16.350 million units, $7.610 billion revenue
• Mac: 4.136 million units, $5.519 billion revenue
• iPod: $2.761 million units, $461 million revenue
• iTunes/Software/Services: $4.573 billion revenue

Apple is providing the following guidance for its fiscal 2014 third quarter:

• revenue between $36 billion and $38 billion
• gross margin between 37 percent and 38 percent
• operating expenses between $4.4 billion and $4.5 billion
• other income/(expense) of $200 million
• tax rate of 26.1 percent<

Wall Street analysts were expecting:

• Thomson Reuters: $10.18 a share on $43.53 billion in revenue
• FactSet: $10.19 a share on $43.7 billion revenue
• Bloomberg:
- Revenue: $43.6 billion
- EPS: $10.16
- Gross margin: 37.7%
- iPhone unit sales: 37.7 million units
- iPhone average selling price (ASP): $610
- iPad unit sales: 19.7 million units
- iPad ASP: $430
- Mac unit sales: 4.03 million units
- iPod unit sales: 2.99 million units
- Apple’s Q314 revenue guidance: $38.1 billion

[dennisw]

Comparing the relative values of companies by comparing their stock prices is dumb, Dennis. That is demonstrated by this current seven for one split that Apple is doing to make its stock more attractive for small investors. It has zero effect on the company. It has a huge positive effect on current investors as demand from small investors will tend to drive the price up.

So why didn't apple split 2-3-4 years ago to bring in small investors.

[Swordmaker]

So why didn't apple split 2-3-4 years ago to bring in small investors.

A stock split does very little for the company. . . unless they intend to issue more stock and need to expand the potential market to sell the new issue. Apple is not planning to do that. Steve Jobs did not particularly care what the price of the stock was doing.

Apple the company gets NO benefit from the trades of the stocks in circulation and in fact the more outstanding stocks there are, the higher the costs to service the stockholders are, by a small increment per stockholder. Each share on the books is an equity position (read liability) requiring communications, attention, and payment of dividends.

There is also turmoil in the market associated with splits. . . and a lot of financial, regulatory, and bookkeeping costs to the company. You will see that in the weeks to come.

[minnesota_bound]

If I by Apple stock now would I get the stock split?

[Swordmaker]

If I by Apple stock now would I get the stock split?

There will be a date certain that will be announced. Holders of the stock on that date will get seven shares. I expect the price to go up before that.

Apple has to make certain preparations before they do it. If you are going to buy, I think you should buy ASAP. I am not an advisor, and you need to make your own decision. The nice thing will be after the split it will be easy to buy Apple a share or two at a time.

[PIF]

Carl Icann said in a CNN interview that he view AAPL as a long term investment.

I plan to use my accumlated divideds to buy more shares after the split takes effect. At $80-100 a share and with some long awaited new product, the stock might return to its current price.

[kevkrom]

Now you have to be thinking $100 a share. That's the equivalent. $100 times 7 = $700 pre split

I think that was a joke - if post-split, the stock goes back to $700, that's a 7x or 8x increase, hence the whole "new life" comments.

[Swordmaker]

I think that was a joke - if post-split, the stock goes back to $700, that's a 7x or 8x increase, hence the whole "new life" comments.

Could be...