Apple Posts Rare Q3 Miss, $35B Revenue, $8.8B Profit

| Apple Stock Watch

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Apple reported a rare miss for the June quarter on Tuesday. The company turned in revenue of $35 billion for its third fiscal quarter and Earnings of $8.8 billion, with earnings per share EPS of $9.32. While up from the prior year, Wall Street consensus numbers—which are usually conservative—had been pegged at $37.2 billion in revenue and and $10.35 in EPS.

Apple sold 26 million iPhones, well below the 29 million consensus number. On the other hand, Apple sold some 17 million iPads, well above the 15 million consensus number for Apple’s tablet.

“We’re thrilled with record sales of 17 million iPads in the June quarter,” Apple CEO Tim Cook said in a statement. “We’ve also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we’ve got in the pipeline.”

Apple also sold 4 million Macs during the quarter, slightly below the high end of expectations, which was 4.3 million units. Apple’s Mac sales represent 2 percent year-over-year growth in a industry that has seen flat growth for much of the last year.

Apple is also still selling iPods. The company reported sales of 6.8 million iPods during the June quarter, which represents a 10 percent decline from the year-ago-quarter, but still represents a solid result for the mature product line.

Apple CFO Peter Oppenheimer used the company’s earnings announcement to officially declare a dividend of $2.65 per share. The company announced its plan to do so earlier in 2012, but today’s announcement marks the beginning of the dividend.

Mr. Oppenheimer offered very conservative guidance for the September quarter of $34 billion in revenue and EPS of $7.65. That’s well below Sterne Agee’s model of $37.2 billion in revenue and EPS of $10.49 and Wall Street’s consensus number of $38 billion in revenue and EPS of $10.22. Sterne Agee’s Shaw Wu warned his clients on Monday to expect very conservative guidance from Apple.

Apple’s stock was hammered in after hours trading—as of this writing, shares of AAPL were trading at $570.00, down $30.92 (-5.15%).

*In the interest of full disclosure, the author holds a tiny, almost insignificant share in AAPL stock that was not an influence in the creation of this article.

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8 Comments Leave Your Own

geoduck

Tim Cook said in a statement. ?We?ve also just updated the entire MacBook line, will release Mountain Lion tomorrow

Woo Hoo. I might just have to bring my MBP to work and update it there.

jfbiii

It always strikes me as odd that we describe what actually happened as the “miss” as though predictions were something other than guesses by people watching from the sidelines.

eDc

How is this a miss?  Didn’t Oppenheimer provided Q312 guidance of ?diluted earnings per share of about $8.68? on ?revenue of about $34 billion.?

mblaydoe

Congrats for following the stupid pundit script.

Apple didn’t meet some idiots’ unrealistic predictions but exceeded their own. How is that a “miss”? But then that is what happens every single quarter and it gets reported the exact same way every single quarter.

Bryan, aren’t you getting tired of this? We expect better of you.

daemon

How is this a miss?  Didn?t Oppenheimer provided Q312 guidance of ?diluted earnings per share of about $8.68? on ?revenue of about $34 billion.?

It would have been a very good guidance if Oppenheimer didn’t have a history of severely under guiding Apple for the last twelve years. Now, anything less than 150% of what Oppenheimer gives guidance for is abject failure.

Funny how giving misleading guidance can sour the market towords your company…

Bryan Chaffin

It’s a miss from Wall Street’s perspective, and it turns out that’s what counts. Daemon’s comments are also spot on (though the 150% mark is hyperbole). Apple is reaping what it has been sowing when it comes to guidance.

It’s not the end of the world, but it is a miss.

John Dingler, artist

Jesus, God! It made 1.5 billion more than a year ago! Astounding. Now I want it to win more in courts world-wide.

John Dingler, artist

Jesus, God! It made 1.5 billion more than a year ago! Astounding. Now I want it to win more in courts world-wide.

(had to do a screen shot of CAPTCHA and tease out the letters in Photoshop)

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