Apple Posts Record Quarter, But Misses Estimates [Update]

| Apple Stock Watch

Big Piles of MomeyApple Inc. posted a rare miss for the September quarter on Tuesday, announcing record revenue of US$28.27 billion and record earnings of $7.05 per share (EPS) (total profit of $6.62 billion). Despite the new records, the company missed consensus Wall Street estimates of revenue of $29.2 billion and EPS $7.20, leading to a sharp sell-off in after hours trading.

Those results compare to revenue of $20.34 billion in the September quarter of 2010, Apple’s 4th fiscal quarter, and EPS of $4.64. The company reported gross margins of 40.3%, up from 36.9% in the year-ago quarter.

That works out to 17.07 million iPhones in the quarter, even though the company was expected to update the iPhone line in October. Apple also sold 11.12 million iPads, 6.62 million iPods, and a staggering 4.89 million Macs.

“We are extremely pleased with our record September quarter revenue and earnings and with cash generation of $5.4 billion during the quarter,” Apple CFO Peter Oppenheimer said in a statement. “Looking ahead to the first fiscal quarter of 2012, which will span 14 weeks rather than 13, we expect revenue of about $37 billion and we expect diluted earnings per share of about $9.30.”

Shares in AAPL plummeted in after hours trading, where it is currently selling at $395.98, down $26.26 (-6.22%). The stock has moved slightly higher to $422.24, up $2.25 (+0.54%), on strong volume of 29 million shares trading hands during the regular session.

The Mac Observer will be offering live coverage of Apple’s quarterly conference call with analysts and detailed coverage of the major news to come out of the call.

[Update: This story was updated with additional details. - Editor]

*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.

Comments

Ross Edwards

Only in today’s idiot-land of Wall Street is posting RECORD REVENUE and RECORD PROFITS not good enough.

I’ll continue buying and holding AAPL long, thanks.  In fact, if you’re selling shares as the price drops, I’ll take those.  Thanks.  Idiots.

Lee Dronick

the company missed consensus Wall Street estimates of revenue of $29.2 billion and EPS $7.20, leading to a sharp sell-off in after hours trading.


Good grief!

Did Apple make or exceed Apple’s estimates?

mhikl

I?ll continue buying and holding AAPL long, thanks.

Smart, Ross. And unless one is pushing 90 or in some iffy times; hold, hold, hold. Three good rules for Apple stock. And rule 4, buy more when price manipulators force it down.

Good point, Lee. That is what counts. Apple bases its projections on knowledge.

BurmaYank

Good grief!
Did Apple make or exceed Apple?s estimates?”

So, Sir Harry now is the sardonic Sir Dronick!
Que bueno.

Lee Dronick

So, Sir Harry now is the sardonic Sir Dronick!

Yes, well call me Lee.

don

ebb and flow.  those selling will likely buy back when it bottoms out.  Apple don’t pay dividends, so this is just profit taking.  smile

BurmaYank

“So, Sir Harry now is the sardonic Sir Dronick!  Que bueno.”

“Yes, well call me Lee.”

Roger that, Lee.
(and may I also say no one here has ever been given cause to call you “SurLy”.)

Bryan Chaffin

Good grief!

Did Apple make or exceed Apple?s estimates?

That is not a fair question. Apple ALWAYS guides conservatively, artificially so. The company under-guides on purpose.

Wall Street tends to offer estimates that are more aggressive than Apple, but still leave room for some up side. When you’re an analyst, it’s FAR better to be close to results, but slightly miss, than it is to be close, but be over.

So what we’ve seen for the last several years is that Apple under-guides, Wall Street slightly under-estimates, and then Apple surprises everyone to the up side.

This is the first time in a long time that Wall Street’s estimates were higher than Apple’s actual results.

But this game starts with Apple’s deliberate campaign of guiding artificially low.

nealg

So what we?ve seen for the last several years is that Apple under-guides, Wall Street slightly under-estimates, and then Apple surprises everyone to the up side.

This is the first time in a long time that Wall Street?s estimates were higher than Apple?s actual results.

But this game starts with Apple?s deliberate campaign of guiding artificially low.

Bryan,

Very true but I think the estimates that I have been seeing for this past quarter were just very aggressive, especially given that there was no iPhone refresh(and there was one right before the start of the equivalent quarter last year).

Putting the numbers in perspective, over $27 in trailing earnings, with Apple’s guidance that is over $30 in earnings by the end of the Dec. quarter, and over $80 in cash per share right now. The just reported quarter 50% up yoy and that is without a new iPhone. Just reported quarter was bigger than last years holiday quarter. The present holiday quarter guidance is 50% larger than last years holiday quarter.

And then Oppenheimer is saying that Apple will sell record numbers of iPhones and iPads.

I am comfortable just holding my present position right now.

Neal

wab95

Putting the numbers in perspective, over $27 in trailing earnings, with Apple?s guidance that is over $30 in earnings by the end of the Dec. quarter, and over $80 in cash per share right now. The just reported quarter 50% up yoy and that is without a new iPhone. Just reported quarter was bigger than last years holiday quarter. The present holiday quarter guidance is 50% larger than last years holiday quarter.


Excellent points, Nealg. I agree that Wall Street’s estimates were aggressive, to which I ascribe, at least in part, the anticipated iPhone refresh, which many pundits/analysts predicted would come in September.

Bryan’s point, with which you were not taking issue, however, still stands, and I think is a fair description of the Apple/Street dynamic.

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