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 TMO Headlines - Updated August 25th

Thu, 12:22 PM
Three Ways to Free Up Space on your iPhone and Remove Old App Data
Thu, 11:48 AM
Adam West and Burt Ward Return for Batman '66 Animated Movie
Thu, 11:08 AM
Apple Music Festival Starts Sept 18 with Elton John
Thu, 11:00 AM
TMO Daily Observations 2016-08-25: Interview with Ruby Calling's Jean MacDonald
Thu, 9:23 AM
OS X: Opening an App When You Log In
Wed, 9:46 PM
What You Need to Know about the U.S. Defending Apple's European Taxes
Wed, 6:01 PM
ACM 374: The Apple Narrative, Music Industry Directives, and Samsung's Spoiled Milk
Wed, 2:45 PM
Zus MFi-Certified Kevlar Lightning Cable: $19.99
Wed, 2:31 PM
Siri and Apple's Machine Learning Are About to Get a Lot Better
Wed, 12:56 PM
Obduction, Myst's Spiritual Successor, is now Available
Wed, 11:00 AM
TMO Daily Observations 2016-08-24: Interview with Andrew Tokuda, aka Digital Droo
Wed, 8:00 AM
Checking Your 'Find My Mac' Status (And Why You Might Need To!)
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!