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Apple Reports Record Q2 Results, Beats Consensus Estimates

Apple Reports Record Q2 Results, Beats Consensus Estimates

by , 4:50 PM EDT, April 25th, 2007

Apple Inc. announced Wednesday results for its 2nd fiscal quarter, ending in March, 2007. The company reported revenue of US$5.26 billion, and a quarterly profit of $770 million, or $.87 per diluted share, record results for the March quarter. Results are ahead of consensus estimates of $5.17 billion in revenue, and well ahead of consensus estimates of $.64 per share in earnings.

"We are very pleased to report the most profitable March quarter in Apple's history," Apple CFO Peter Oppenheimer said in a statement. "Looking ahead to the third fiscal quarter of 2007, we expect revenue of about $5.1 billion and earnings per diluted share of about $.66."

Forecasts are largely on track with analyst forecasts.

Apple reported revenue of $4.36 billion in the year ago quarter, and profits of $.47 per share. Gross margins for the quarter came in at 35.1%, well ahead of the year-ago quarter, and likely to be cited by the company as a big contributor to profits.

The company shipped 1.517 million Macs, up some 36% over the year-ago quarter. Analysts had been expecting 1.4 million Mac units sold.

"The Mac is clearly gaining market share, with sales growing 36 percent -- more than three times the industry growth rate," Apple CEO Steve Jobs said in a statement.

On the other hand, Apple turned in 10.549 million iPod units sold, which is slightly behind consensus estimates of 10.7 million units.

Mr. Jobs also reminded people of the company's upcoming iPhone in the statement, saying, "We're very excited about the upcoming launch of iPhone in late June, and are also hard at work on some other amazing new products in our pipeline."

The Mac Observer will be covering Apple's conference call with financial analysts, which is taking place later on Wednesday.

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

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


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