Apple reported a record December quarter — the company’s fiscal first quarter — with revenues of $91.8 billion and earnings per share (EPS) of $4.99, both all-time records. The company credited iPhone 11 and iPhone 11 Pro, as well as Wearables and Services for the company’s results.

Revenues were up year-over-year from $84.3 billion, and Wall Street consensus was just $88.48 billion, meaning Apple beat those expectations. The company reported revenue from Wearables at $10 billion, with Wall Street expecting $9.85 billion. Services were $12.72 billion, and though up year-over-year, Services lagged behind Wall Street expectations of $13.06 billion. Apple reported iPhone revenues of $55.96 billion, which was way ahead of Wall Street expectations of $51.2 billion. 

Shares of AAPL rose in the regular session to $317.69 per share, up $8.74 (+2.83%), on strong volume of 35.3 million shares trading hands. Shares rose even higher in the after hours market, with shares of Apple rising to $324.67, up $6.98 (+2.20%).

Apple money pile

“We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables,” Apple CEO Tim Cook said in a statement. “During the holiday quarter our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers — and a great driver of our growth across the board.”

Apple CFO Luca Maestri added, “Our very strong business performance drove an all-time net income record of $22.2 billion and generated operating cash flow of $30.5 billion. We also returned nearly $25 billion to shareholders during the quarter, including $20 billion in share repurchases and $3.5 billion in dividends and equivalents, as we maintain our target of reaching a net cash neutral position over time.”

Apple provided guidance for the March quarter of revenues between $63 and $67 billion, with gross margins between 38 and 39 percent. The company expects operating expenses (opex in finance parlance) between $9.6 and $9.7 billlion, with other income of $250 million and a tax rate of 16.5 percent.

[Update: this article was updated with additional info on category revenues, guidance, and Wall Street consensus expectations. – Editor]

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archimedes

iPad and Mac shrinking isn’t good though. Although the PC market is expanding, Apple’s market share (in terms of revenue as well as units) seems to be contracting. Although it’s a nice technology demonstration and great for a high-end segment of the professional market, the Mac Pro doesn’t seem to be having any effect on Apple’s bottom line as yet. iPadOS seems like a step in the right direction for the iPad, and sale pricing down to $249 makes it one of the most affordable Apple computing devices ever, so it’s a bit puzzling that the iPad isn’t gaining some… Read more »

Lee Dronick

Well, I for one am pleased and am looking forward to my next dividend.

archimedes

Diversification is important due to the cycle of tech booms and busts, and the market has a bad history of punishing AAPL on a whim (potentially leading to some buying opportunities), but it’s nice to see consistent dividends, and it’s nice to see Apple’s outstanding performance actually reflected in the stock price.
I wonder what happened to all of the Apple Watch naysayers now that it’s bigger than the iPod ever was? 😉

bbh

On the Apple Watch. I was one of the holdouts because I have acquired 4 Rolexes over my lifetime that I REALLY liked. My wife had an AW and really liked it. When Chase started allowing “points” to be used for Apple purchases, I bought one. I can’t imagine doing without its incredible functionality now.

All one has to do is try one for a week. Apple should have a “try before buy” program. (I guess they do, given their generous return policy…)