Apple Reports $6.40 EPS vs $5.36 Consensus, $24.67 Billion In Revenue, Outlook Weak

Tyler Durden's picture

Apple beats top and bottom line, but not all is good in Borg land - Apple fails to meet the top and bottom line outlook.

  • APPLE 2Q REVENUE $24.67B, EST. $23.38B
  • APPLE SEES 3Q EPS ABOUT $5.03, EST. $5.25
  • APPLE 2Q SOLD 9.02 MILLION IPODS, DOWN 17%
  • SOLD 3.76 MM MACS IN Q2, UP 28%
  • SOLD 18.65 MM IPHONES IN Q2, UP 113%
  • APPLE SEES 3Q EPS ABOUT $5.03, EST. $5.25

Once again the key variable is the outlook: In Q3 Apple sees revenue of $23 billion to $23.83 billion, and
EPS of $5.03 to $5.25. Consensus has revenue at $23.83
billion, and $5.25 in EPS.

The release:

CUPERTINO, California—April 20, 2011—Apple®  today announced financial results for its fiscal 2011 second quarter ended March 26, 2011. The Company posted record second quarter revenue of $24.67 billion and record second quarter net profit of $5.99 billion, or $6.40 per diluted share. These results compare to revenue of $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share, in the year-ago quarter. Gross margin was 41.4 percent compared to 41.7 percent in the year-ago quarter. International sales accounted for 59 percent of the quarter’s revenue.

Apple sold 3.76 million Macs during the quarter, a 28 percent unit increase over the year-ago quarter. The Company sold 18.65 million iPhones in the quarter, representing 113 percent unit growth over the year-ago quarter. Apple sold 9.02 million iPods during the quarter, representing a 17 percent unit decline from the year-ago quarter. The Company also sold 4.69 million iPads during the quarter.

“With quarterly revenue growth of 83 percent and profit growth of 95 percent, we’re firing on all cylinders,” said Steve Jobs, Apple’s CEO. “We will continue to innovate on all fronts throughout the remainder of the year.”

“We are extremely pleased with our record March quarter revenue and earnings and cash flow from operations of over $6.2 billion,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third fiscal quarter of 2011, we expect revenue of about $23 billion and we expect diluted earnings per share of about $5.03.”

And the provided data sheet:

 

 

                                                                                 
     Q1 2011      Q2 2010      Q2 2011      Sequential Change     Year/Year Change  
     CPU
Units K
     Revenue
$M
     CPU
Units K
     Revenue
$M
     CPU
Units K
     Revenue
$M
     CPU Units     Revenue     CPU Units     Revenue  

Operating Segments

                                                                                      

Americas

     1,360       $ 9,218         971       $ 4,993         1,217       $ 9,323         - 11     1     25     87

Europe

     1,245         7,256         899         4,050         995         6,027         - 20     - 17     11     49

Japan

     162         1,433         129         887         155         1,383         - 4     - 3     20     56

Asia Pacific

     516         4,987         338         1,886         596         4,743         16     - 5     76     151

Retail

     851         3,847         606         1,683         797         3,191         - 6     - 17     32     90
                                                                                        

Total Operating Segments

     4,134       $ 26,741         2,943       $ 13,499         3,760       $ 24,667         - 9     - 8     28     83
                                                                                        
                 
            Revenue             Revenue            

Revenue

     Sequential Change     Year/Year Change  
     Units K      $M      Units K      $M      Units K      $M      Units     Revenue     Units     Revenue  

Product Summary

                                                                                      

Desktops (1)

     1,227       $ 1,731         1,147       $ 1,532         1,009       $ 1,441         - 18     - 17     - 12     - 6

Portables (2)

     2,907         3,699         1,796         2,228         2,751         3,535         - 5     - 4     53     59
                                                                                        

Subtotal CPUs

     4,134         5,430         2,943         3,760         3,760         4,976         - 9     - 8     28     32
                     

iPod

     19,446         3,425         10,885         1,861         9,017         1,600         - 54     - 53     - 17     - 14

Other Music Related Products and Services (3)

              1,431                  1,327                  1,634                 14             23

iPhone and Related Products and Services (4)

     16,235         10,468         8,752         5,445         18,647         12,298         15     17     113     126

iPad and Related Products and Services (5)

     7,331         4,608         0         0         4,694         2,836         - 36     - 38     N/     N/

Peripherals and Other Hardware (6)

              593                  472                  580                 - 2             23

Software, Service and Other Sales (7)

              786                  634                  743                 - 5             17
                                                                                        

Total Apple

            $ 26,741                $ 13,499                $ 24,667                 - 8             83