The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Apple Sings a Happy Tune; $290 Million Q2 Profit on iPod Growth (UPDATE)

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.

Recent Headlines - Updated October 31st

Fri,11:25 AM
How To Clean Up and Rebuild Apple Mail Data [Yosemite Update]
9:39 AM
Judge to Unseal GT Advanced Bankruptcy Filing Documents
8:45 AM
Yosemite: Maximizing Windows & the Green “Stoplight” Button
Thu,7:17 PM
Meijer, the CurrenctC/MCX Member Who Refuses to Block Apple Pay
6:36 PM
Get Free Bitcoins with 52 Website Faucets that Really Pay [Update]
5:17 PM
Last Chance for The Bluetooth Shower Speaker: $39
5:09 PM
CES Rebrands iLounge Pavilion as iProducts, Hopes to Attract Macworld Expo Exhibitors
2:13 PM
Apple Reverses PCalc Decision; App and Widget Can Stay
1:29 PM
TMO Daily Observations: 2014-10-30
11:36 AM
Microsoft Joins the Fitness Tracking Game with Fitness Band
9:52 AM
Tim Cook’s Gay Coming Out is a Big Deal for Equal Rights
Wed,9:37 PM
MCX Holds Press Conference, Does Itself No Favors
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!