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TMO Reports - Apple Sings a Happy Tune; $290 Million Q2 Profit on iPod Growth (UPDATE)

by , 4:30 PM EDT, April 13th, 2005

It was another successful quarter for Apple Computer, as the Mac and iPod maker exceeded estimates posting a net fiscal second-quarter profit of US$290 million, or 34 cents a share -- 10 cents better than the street estimate.

Revenue for the quarter was $3.24 billion, up 70% from the year-ago period of $1.91 billion. Gross margin was 29.8%, up from 27.8% in the year-ago quarter. International sales accounted for 40% of the quarter's revenue, the company said.

Analysts surveyed by Thomson First Call had forecast Apple to earn 24 cents a share on $3.21 billion in revenue. Apple predicted in January that it would earn 20 cents a share in the just-completed quarter, on $2.9 billion in sales.

During the same period a year ago, Apple earned $46 million, or 6 cents a share on $1.9 billion in revenue. The Q2 profit rose more than sixfold compared to a year ago.

As early as Wednesday afternoon, analyst Keith Bachman of Banc of America Securities warned clients that Apple had little room for surprise above $0.24 to $0.25 cents per share.

Apple said it sold 5.3 million iPods in the quarter-- at the high end of the most optimistic estimates. In the Christmas quarter, the company sold 4.6 million iPods, and only 807,000 iPods in the year-ago quarter.

As for Macs sales, the company said it shipped 1,070,000 CPUs during the period, representing a 43% jump from the quarter a year ago, when the company sold 749,000 Macs. In the December quarter, the company sold 1,046,000 Macs.

"We're very pleased to report 70% revenue growth and a 530% increase in net income," Peter Oppenheimer, Apple's chief financial officer, said in a prepared statement.

Apple stock (AAPL) closed down $1.62 on Wednesday, or 3.80% to $41.04 on volume of 42.15 million shares.

Apple forecasted earnings of 28 cents a share on $3.25 billion in sales for the current quarter. Analysts had previously forecast a profit of 24 cents a share on $3.21 billion in sales.

For fiscal year 2005, analysts are looking for $1.11 in per-share earnings on sales of $13.34 billion. Apple did not provide guidance for the full year.


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Observer Comments

Show: Subjects Only | Full Comments
View Name:Guest
Subject: Yes!!!
View Name:Guest
Subject: 5.3e^12
Close Name:B-sabre Posts: 70 Joined: 18 Jan 2005
Subject:

Quote
Guest wrote:
"Apple said it sold 5.3 million million iPods in the quarter-- way above the most optimistic numbers."

I have to say, that's way above my estimates!


You mean 5.3x10^6.

View Name:Guest
Subject: dying?
View Name:Guest
Subject: Why is AAPL lower in after-hour trading??
View Name:Guest
Subject: apple is alwasy down on day numbers are reported
View Name:Guest
Subject: this was 2nd record revenue for apple in row
View Name:Guest
Subject: Negatives
View Name:Guest
Subject: Yikes?
Close Name:jacrav Posts: 268 Joined: 04 Jul 2001
Subject: Over 40M shares traded today …

… let's see where we stand when the dust settles … Will we hit $50 today or tomorrow ?

View Name:Guest
Subject:
View Name:Guest
Subject: Apple is dead and these numbers prove it.
View Name:RealityCheck -   Troll Posts: 392 Joined: 06 May 2004
Subject: Told You So - Poor Power Mac and Mac Mini Sales
Close Name:jhonka Posts: 77 Joined: 05 Sep 2003
Subject: sigh...

Quote
RealityCheck wrote:
Power Mac units *declined* by 19% and iMac/eMac/Mac mini revenue *declined* by 22%. The Mac mini fad is fading fast, after the initial rush by Mac fanatics to replace their old iMacs with the Mac mini, the public isn't buying into an underpowered toy with a low quality hard drive that often dies after a few weeks.

Mac sales were up slightly since last quarter, by the way. Sales usually drop dramatically after the Holidays. The consumer market usually sags about 15-20% after December. The fact that Apple's sales held up overall is impressive. Of course, iMac/eMac/mini revenue is going to decline! If people are buying a cheaper machine, Apple is obviously going to see a dip in revenue! The Mac mini is a low-revenue, fairly low-margin machine.

And I'd sure like to see where you make this claim that Mac mini hard drives fail after a few weeks.

Try again.



Last edited by jhonka on Wed Apr 13, 2005 5:39 pm; edited 1 time in total
Reply | Quote
View Name:Guest
Subject:
Close Name:jacrav Posts: 268 Joined: 04 Jul 2001
Subject: Just topped 50.4M shares …

… and still trading at 40.8 … weird !
Actual results bested estimates by 41% !!!!

Close Name:kenaustus Posts: 601 Joined: 27 Jun 2003
Subject: Better than Christmas?

Macs actually sold 24,000 more Macs than they did in the Christmas Quarter, which is even more impressive than the 43% over last year.

RC was probably listening to the Quicktime broadcast with his pencil ready, looking for any bad news. OK, we know that the eMac needs a re-do before the education buying season, iBooks could use some attention and the PM is ready for IBM to deliver something new.

So tell us RC, how has Apple's net cast position changed? Still 6+ Billion? What about beating the pro's estimates by 10¢? Can you give us some guidance?

Close Name:jacrav Posts: 268 Joined: 04 Jul 2001
Subject: CPU numbers …

… increased 2% over last quarter, which included the holiday season …
… mini is just now being widely distributed in the low-end version, but out of stock in the 1.42 version (I'm still awaiting the one I ordered over 3 weeks ago…). Must be an incredible # of units shipped …

View Name:Guest
Subject: Told You So - RC Wrong Again
View Name:Guest
Subject: Original article had a typo
Close Name:jacrav Posts: 268 Joined: 04 Jul 2001
Subject: Hey RC …

This is the MarketWatch bulletin I just got in my mailbox: Apple Computer posts 70% leap in quarterly sales

Close Name:jacrav Posts: 268 Joined: 04 Jul 2001
Subject: Analysts are looking for $1.11 per share for 2005 …

… results are $.73 per share for the first 2 quarters … looks like they might have to raise their estimates by ONLY 33% …

Close Name:jacrav Posts: 268 Joined: 04 Jul 2001
Subject: Another one for RC …

… if he deigns check his facts before posting …
From ZDNet (hardly a Mac apologist):
"On the Mac side, the company sold $483 million worth of iMacs, eMacs and Mac Minis, down from $620 million in the December quarter but more than double the sales from the year-ago quarter."
the "more than double the sales from the year-ago" sounds real sweet to my ears …

Close Name:iLemming Posts: 9 Joined: 07 Apr 2005
Subject: Apple's PC Shipments are Growing 4.43 Times...

...faster than the rest of the PC industry. Apple had a year over year PCs shipped growth of 43% while IDC is forecasting a 9.7% growth for the industry in general.

Check the facts:
http://www.internetnews.com/stats/article.php/3493031

By the way, Reality Check, you said both the PowerMac AND Powerbooks would decline, not just the PowerMacs.

Check the facts (first post):
http://www.macobserver.com/article/2005/04/13.4.shtml

View Name:Guest
Subject: HET RC!!
Close Name:gopher Posts: 269 Joined: 28 Mar 2002
Subject: Mac is NOT the company name. It is the name of Apple's OS

"Macs actually sold?" Apple is the company name. Macs are the computers they make, and Mac OS is the name of the operating system that runs on them. Anyone who tells you contrarywise doesn't know the company, nor do they know the computers. kenaustus, if you are going to criticize the PC troll, please at least get your facts straight about who you are talking about.

Quote
kenaustus wrote:
Macs actually sold 24,000 more Macs than they did in the Christmas Quarter, which is even more impressive than the 43% over last year.

RC was probably listening to the Quicktime broadcast with his pencil ready, looking for any bad news. OK, we know that the eMac needs a re-do before the education buying season, iBooks could use some attention and the PM is ready for IBM to deliver something new.

So tell us RC, how has Apple's net cast position changed? Still 6+ Billion? What about beating the pro's estimates by 10¢? Can you give us some guidance?

Close Name:Biff Posts: 1479 Joined: 08 Apr 2004
Subject:

Wait you mean the company isn't called Mac? Geez and here I thought it was! I think it is such a widespread problem that people mistakenly think the company is called "Mac" and not "Apple". Luckily we have someone like gopher who can combat this problem and contribute to the community. Cause I'm sure that kenaustus actually thought the company was called Mac and that his post didn't just have a simple typo. The World is now a better place.

Close Name:gslusher Posts: 2003 Joined: 13 Nov 2002
Subject: Stock Prices: the Real Story

Perhaps RC would like to tell us which of these companies has had major growth in stock price over the last year or so: Apple or Microsoft. (The answer should be obvious.) I saved a picture of the report from Yahoo's fiannce section for both 1-year and 2-year performance. See:

http://homepage.mac.com/gslusher/.Public/apple_1year.gif

and

http://homepage.mac.com/gslusher/.Public/apple-2year.gif

So you don't have to look at those: Apple has grown about 200% in 1 year, something like 500% in 2 years. (That followed a major drop from 2001 through part of 2003.) Microsoft (MSFT), in contrast, has been relatively flat and is actually a bit down over the 1-year period. Apple has beaten the Dow Jones, S&P 500, and the NASDAQ averages for most of the last two years, while Microsoft has generally been below those averages for much of the last two years. Now, which company is "in trouble"?

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