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Apple Beats On Stronger iPhone, Weaker iPad Sales; Cash Grows To Record At Slowest Pace In Three Years

Tyler Durden's picture




 

Here are the highlights:

  • Q3 Revenue of $35.32 billion beats expectations of $35.04 billion; This compares to $35.0 billion a year ago, or the firm barely posted a revenue increase this quarter - the first time in years
    • sees Q4 revenue of $34-37 billion, Exp. $36.97 billion;
  • Q3 EPS of $7.47, Exp. $7.31
  • Q3 Gross margin of 36.9%, Exp. 36.7%; Sees Q4 margin of 36%-37%
  • iPhone sales of 31.2 million, Expected 26.1 million
  • iPad sales of 14.6 million, Expected 17.4 million
  • And since margin did not reflect a pick up in iPhone sales, sure enough the Q3 iPhone ASP was $581, vs Expectations of $597
  • AAPL total cash and investment rose to a record $146.6 billion up from $144.7 billion, however the sequential growth of "only" $1.9 billion was the lowest since March 2010

And on those news the stock is up some $15 after hours: hardly representative of the epic upward moves in days gone by.

What is the upside? This:

“We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.”

If this was a Steve Jobs quote, the promise alone would be good for 10%. Now... not so much.

And the results in chart format - current calendar quarter highlighted

Revenue:

Margin:

Component breakdown:

Cash:

 

The stock remains full of hope...relative to earnings...

 

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