Apple to Release Q2 2009 Financial Results on April 22nd

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com/2009/04/20/apple-to-release-q2-2009-financial-results-on-april-22nd/)

Apple today issued a media alert (http://www.apple.com/pr/library/2009/04/20alert_results.html) announcing details for the April 22nd release of its financial results for the second quarter of fiscal year 2009. The results will cover sales from December 28th, 2008 through March 27th, 2009, and will be released at the close of trading (4:00 PM Eastern / 1:00 PM Pacific) on Wednesday. Apple's conference call discussing the results will follow at 2:00 PM Pacific and will be available via a live audio webcast (http://www.apple.com/quicktime/qtv/earningsq209/).

At Macworld Expo 2009 early in the quarter, Apple announced the new 17" MacBook Pro (http://www.macrumors.com/2009/01/06/apple-releases-aluminum-unibody-17-macbook-pro/), iLife '09 (http://www.macrumors.com/2009/01/06/apple-announces-ilife-09/), and iWork '09 (http://www.macrumors.com/2009/01/06/apple-releases-iwork-09/). In early March, Apple introduced new Mac Pros (http://www.macrumors.com/2009/03/03/apple-introduces-new-mac-pro-with-nehalem-xeon-processors/), as well as updated models of the iMac, Mac mini, AirPort Extreme Base Station, and Time Capsule (http://www.macrumors.com/2009/03/03/apple-announces-new-imacs-mac-minis-airport-extreme-and-time-capsule/). The iPod shuffle also saw a significant redesign (http://www.macrumors.com/2009/03/11/apple-releases-smaller-4gb-ipod-shuffle-in-black-and-silver/) near the end of the quarter.

For the quarter, analysts are predicting net earnings of $1.09 per share on revenue of just under $8 billion, near the high end of or slightly above Apple's guidance (http://www.apple.com/pr/library/2009/01/21results.html) of $0.90-$1.00 profit on $7.6-$8.0 billion of revenue. Apple's year-ago results (http://www.macrumors.com/2008/04/23/apple-2q-2008-results-conference-call-highlights-profit/) for the second quarter of 2008 included net earnings of $1.16 per share on revenue of $7.51 billion.

Article Link: Apple to Release Q2 2009 Financial Results on April 22nd (http://www.macrumors.com/2009/04/20/apple-to-release-q2-2009-financial-results-on-april-22nd/)

[Eraserhead]

I'm sure I've seen this somewhere before at the beginning of the month...

Anyhow, iPhone and Mac sales figures as well as overall profits will be especially interesting this time.

[twoodcc]

this should be interesting. we will see how the economy is affecting mac sales and revenue

[Grimace]

As always, Apple will blow out its own estimates, but will give "cautious" guidance for the future quarter.

Personally, I am predicting $1.12 or $1.13 per share. Time will tell! :)

[Shaun, UK]

I would be interested to know how many 17" MBP's they have sold. I am still waiting for the 2 Apple re-sellers in my town to get them in, over 3 months after it was released. I don't live near an Apple Store but both re-sellers are major national stores. The salesmen keep telling me that Apple are rationing supply for some reason.

[netsql]

"and since we see market rate going down, we give up and will now also offer non-glare monitors, as only noobs buy glare monitors".

[flottenheimer]

This will be very interesting. Has the economic crisis hit Apple hard or is there still business in selling premium stuff in these discount obsessed times.

[Goona]

Apple will continue posting record sales, profits, and adding more to the bank as usual.

[lifeinhd]

I hope Jobs will be there. Here's to hoping ;)

[lifeinhd]

"and since we see market rate going down, we give up and will now also offer non-glare monitors, as only noobs buy glare monitors".

I wish :(

[Plutonius]

No matter what Apple reports, Apple stock always takes a dip after after an earnings report

[BTW]

Big money...big money...no whammies!

Let's hope Apple can beat street estimates. :)

[Mattie Num Nums]

Big money...big money...no whammies!

Let's hope Apple can beat street estimates. :)

I'm actually hoping they don't so maybe they will get it through there thick skulls that we don't like glaring screens, or new designs without substance. I really hope Apple starts innovating again technologically and not just design-wise.

[sam10685]

Didn't they just release Q1?

[akacaj]

I think it is about time that I purchase some AAPL! I wish I would have done it a month ago but I guess I will wait and buy after their earnings report. Each time I wait I end up missing an opportunity but better safe then sorry.

[Flore]

Let's hope Apple can beat street estimates. :)


Seriously the predictions of analysts are getting more and more hilarious.

I predict at least 1.15 per share. :apple:

And that is on a GAAP basis.. Non GAAP will be over 1.50.

[DELLsFan]

"and since we see market rate going down, we give up and will now also offer non-glare monitors, as only noobs buy glare monitors".

Oh geeze ... Some folks like the glossy, now come on ... :rolleyes:

Personally, I'm hoping for the best for Apple on this report. By "best", I mean a wake-up call on what could be best for Cupertino to do as a result of a serious downturn in the economy.

Maybe this means more choices and lower margins and prices for consumers and maybe, just maybe ... less rhetoric on the "holistic, vertical Apple experience" that has justified the premium costs of their products to date.

Well ... I can hope, anyway.

:apple:

[Glideslope]

Oh geeze ... Some folks like the glossy, now come on ... :rolleyes:

Personally, I'm hoping for the best for Apple on this report. By "best", I mean a wake-up call on what could be best for Cupertino to do as a result of a serious downturn in the economy.

Maybe this means more choices and lower margins and prices for consumers and maybe, just maybe ... less rhetoric on the "holistic, vertical Apple experience" that has justified the premium costs of their products to date.

Well ... I can hope, anyway.

:apple:

The "holistic, verticle Apple Experience" will never go away. Period.

I'm more interested in their current Cash Reserves. That will tell a bigger story.

[Flore]

I'm more interested in their current Cash Reserves. That will tell a bigger story.

Well current assets should be over 30Bn now, cash over 10.
More interesting is, that they don't make a lot of use of this money.

Rebuying shares might be a good option right now, restoring investor confidence.

[Grimace]

Personally, I'm hoping for the best for Apple on this report. By "best", I mean a wake-up call on what could be best for Cupertino to do as a result of a serious downturn in the economy.

Maybe this means more choices and lower margins and prices for consumers and maybe, just maybe ... less rhetoric on the "holistic, vertical Apple experience" that has justified the premium costs of their products to date.

Apple has been a rock-solid company for the past 5-7 years because of its business model. High product margins, and a range of products that serves its desired customer base is what has made Apple successful.

You may want more choices. You may want a headless iMac. You may want lower prices.

But, Apple doesn't want everyone's business. Apple chooses to make products for a specific type of customer. And, in many cases, that may not be you.

As someone who used to work for Apple corporate, I can say that the execs are not interested in X% marketshare. They want to make great products that are targeted toward specific markets that will most enjoy them, and they are going to make the user experience so great that customers will gladly pay [what they view to be] a fair price.

Well current assets should be over 30Bn now, cash over 10.
More interesting is, that they don't make a lot of use of this money.

Rebuying shares might be a good option right now, restoring investor confidence.

Wrong on many levels.

Market cap (from shares) is over $105 billion.
Cash reserves are around $25 billion.

Restoring investor confidence? Investors aren't worried about Apple, they are worried about the overall market. The price didn't plummet because of Apple's financials. It went down because people were unsure of the viability of higher priced margins in a down economy.

Both of the past two quarters have proven that wrong (at least for Apple) and this quarter shouldn't be any different.

[Eraserhead]

Didn't they just release Q1?

No, that was back in January - Apple's financial year starts in September.

[angemon89]

My prediction: Revenue of $8 billion, net income around $1.3 billion.

Apple sure isn't feeling this economic slump we're currently in, evident by how well they did last quarter.

[Flore]

Wrong on many levels.

Market cap (from shares) is over $105 billion.
Cash reserves are around $25 billion.

Restoring investor confidence? Investors aren't worried about Apple, they are worried about the overall market. The price didn't plummet because of Apple's financials. It went down because people were unsure of the viability of higher priced margins in a down economy.

Both of the past two quarters have proven that wrong (at least for Apple) and this quarter shouldn't be any different.

Apple balance sheet shows cash at hand of around $12Bn.

On the other hand there is a lot of short term investments, which in total then make up $35Bn. In addition Apple has some non current assets totaling around $5Bn.
Market cap is not the point in this aspect.


What I want to say is that Apple needs to develop an advantage out of these huge cash reserves, especially as they have 0 debts.

The issue with Apple's stock price is that it does not reflect the numbers.
A rebuy of shares might be an option to get closer. I agree there are better ways, for instance not giving out GAAP guidance any more.

People still fail to realize the numbers in an adjusted, non GAAP report.
Apple has actually made around $1.4Bn more in revenue each quarter in 2008 than the GAAP report shows!
And still analysts fail to realize this in their numbers.
It has not happened by coincidence that Jobs pointed this out himself at last years earnings call...

Anyway, I am not an analyst, nor do I want to be one, but I think this whole issue is just astonishing.

[Cinematographer]

I agree there are better ways, for instance not giving out GAAP guidance any more.

I agree with you on what you say about the cash pile.

But Apple has to stay consistent over the years about its accounting principles, and even about the way they tend to sandbag their guidance numbers.

If it hurts the stock price, it's only short term. So we can take it as a buying opportunity. :)

[sgbett]

Apple balance sheet shows cash at hand of around $12Bn.

On the other hand there is a lot of short term investments, which in total then make up $35Bn. In addition Apple has some non current assets totaling around $5Bn.
Market cap is not the point in this aspect.


What I want to say is that Apple needs to develop an advantage out of these huge cash reserves, especially as they have 0 debts.

The issue with Apple's stock price is that it does not reflect the numbers.
A rebuy of shares might be an option to get closer. I agree there are better ways, for instance not giving out GAAP guidance any more.

People still fail to realize the numbers in an adjusted, non GAAP report.
Apple has actually made around $1.4Bn more in revenue each quarter in 2008 than the GAAP report shows!
And still analysts fail to realize this in their numbers.
It has not happened by coincidence that Jobs pointed this out himself at last years earnings call...

Anyway, I am not an analyst, nor do I want to be one, but I think this whole issue is just astonishing.

I'm not an analyst either but everyone and their aunt knows 'cash' is $25bn...

In Millions of USD (except for per share items)
As of 2008-12-27
Cash & Equivalents 7,236.00
Short Term Investments 18,411.00
Cash and Short Term Investments 25,647.00

You are reading total current assets - $10bn of which isn't readily available hence not considered 'cash'.

[Grimace]

Apple balance sheet shows cash at hand of around $12Bn.

On the other hand there is a lot of short term investments, which in total then make up $35Bn. In addition Apple has some non current assets totaling around $5Bn.
Market cap is not the point in this aspect.


I didn't mean to lump marketcap so closely -- but $25 billion is still the amount that is considered cash. Short-term investments count as cash for investment purposes. $25 billion is the amount that people quote for cash reserves, and the amount that Apple could use if it wanted to make an acquisition of...let's say...Adobe or Dell! :)

[Flore]

I'm not an analyst either but everyone and their aunt knows 'cash' is $25bn...

In Millions of USD (except for per share items)
As of 2008-12-27
Cash & Equivalents 7,236.00
Short Term Investments 18,411.00
Cash and Short Term Investments 25,647.00

You are reading total current assets - $10bn of which isn't readily available hence not considered 'cash'.

Sorry I was referring to yearly numbers. e.g Sept 08.

[nickane]

I suspect with the recent news about marketshare losses in the US, apple might only narrowly meet the guidance. The foreign markets will have taken a battering owing to the recent price hikes. Most of the ppl I know who were saving up for a mac desktop in the UK, didn't bother getting one when they came out, because the prices jumped 30%. European posters on the forum seemed similarly annoyed despite their currency remaining buoyant whilst the pound tanked. The prices here are now so skewhiff that the cheapest mac with dedicated gfx is actually a mbp at £1369, since the iMac costs £1499. In the US, that same iMac is $200 less than the baseline MBP at $1999. Obviously, the laptop prices will rise again in September if the exchange rate doesn't improve, but that won't matter so much to ppl if they have a quad core model. The real sting with the last swathe of updates was that they were a step-back in many ways, ie putting integrated gfx in the low-end iMacs and the whole hyperthreading thing.

I know an IT manager who was planning on switching entirely to Mac Pros, but having waited for the new models, found that he was having to pay more for 8 virtual cores than he was 15 months earlier for 8 real ones. You might think the situation was more acute here because of the exchange rate debacle, but there's a reason Microsoft has changed tack with their advertising approach, and that may begin to hurt either this quarter or the next.

[Eric S.]

Recession catches up with Apple?

Apple to concede Mac sales shrinkage tomorrow, analyst predicts (http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9131921&intsrc=news_ts_head)

[Mal]

Recession catches up with Apple?

Apple to concede Mac sales shrinkage tomorrow, analyst predicts (http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9131921&intsrc=news_ts_head)

Nope. Just with analysts who have no clue what they're talking about. They're taking numbers that by themselves are very good considering the economy, and making them out as some horrible plague that has finally "caught up" with Apple. Apple's doing just fine.

My favorite part was the expectation that iPods were down 50% from the year-before quarter. That's a load of bull.

jW

[nickane]

Nope. Just with analysts who have no clue what they're talking about. They're taking numbers that by themselves are very good considering the economy, and making them out as some horrible plague that has finally "caught up" with Apple. Apple's doing just fine.

My favorite part was the expectation that iPods were down 50% from the year-before quarter. That's a load of bull.

jW

I think you misread the article. He said that iPod sales will be down 50% off Q4 2008 because iPods always do well at Christmas. It is widely held throughout the business world that consumer spending saw its biggest drop immediately after Christmas as many people tried not to let the recession affect their holidays, and only tightened their belts once the credit card bills came in, so the drop in iPod sales could be even more severe. He only mentions the year-ago quarter with respect to mac sales.

I realize most analysts talk a load of BS mainly cobbled together from tidbits from MR and its rivals coupled with their own idle speculation, but the numbers suggested here seem pretty plausible. Besides, he seems pretty positive about Apple in the longterm. And the article barely even touches on the classic "iPhone nano" rumour.

[SactoGuy18]

The first quarter 2009 will be particularly bad for every company because of the very steep dropoff from the end of Christmas sales and the fact the stock market took a major nosedive during February.

But I expect Apple sales to rebound as the iPhone is replaced by a new model (maybe new models) by July 2009 and as the iPod models get their yearly "hardware refresh" in September 2009.

One personal prediction: Apple will keep the current iPod nano design, but the new models will be 16 GB low end and 32 GB high end. The 16 GB models will have the full spectrum of case colors like now, but the 32 GB models will be limited to black, silver and Product Red colors. We may see 64 GB and 128 GB iPod touch models based on the next-generation iPhone, essentially ending the legacy of the iPod classic models.

[Mulyahnto]

Deferred revenue for the IPhone should be significant this quarter, since the full price of the IPhone ($500-$600) shows up on the balance sheet as 1/8th of the price over 8 quarters after the sale of the phone. With well over 17M phones in circulation, the deferred revenue could be well over a $1B with a deferred profit of up to $1.00/share.


ATT announced quarterly earnings this morning stating they've activated 1.6M IPhones last quarter, slightly less than the holiday quarter in which they sold 1.9M phones:

http://finance.yahoo.com/news/ATampT-1Q-earnings-fall-but-apf-14996415.html?sec=topStories&pos=7&asset=&ccode=

AT&T added a net 875,000 customers under contract in the first three months of the year, hundreds of thousands more than expected by analysts. Of the new customers, about three-quarters chose the iPhone, for which AT&T is the exclusive U.S. carrier.

The iPhone has been a drag on AT&T's earnings since last summer, when the latest model, the "3G," launched. AT&T has been subsidizing each phone by hundreds of dollars, with the aim of making its money back on service fees, since iPhone users pay 60 percent more per month than other customers.

That strategy started to pay off in the first quarter. Margins in the wireless business are now back almost to where they were before the launch of the iPhone 3G, despite the sale of 1.6 million iPhones in the quarter. The sales figure includes customers switching from other AT&T phones. Sales were down from 1.9 million from the fourth quarter, but were strong for a non-holiday quarter without a new iPhone model.

[grapemac]

when does this start? i'm in UK with no idea of PT/ET time differences

[Peace]

when does this start? i'm in UK with no idea of PT/ET time differences

It starts in one hour.

[Cinematographer]

[QUOTE=PRNewswire]CUPERTINO, Calif., April 22 /PRNewswire-FirstCall/ -- Apple(R) today announced financial results for its fiscal 2009 second quarter ended March 28, 2009. The Company posted revenue of $8.16 billion and a net quarterly profit of $1.21 billion, or $1.33 per diluted share. These results compare to revenue of $7.51 billion and net quarterly profit of $1.05 billion, or $1.16 per diluted share, in the year-ago quarter. Gross margin was 36.4 percent, up from 32.9 percent in the year-ago quarter. International sales accounted for 46 percent of the quarter's revenue.[/QUOTE=PRNewswire]

[rdowns]

Apple Reports Second Quarter Results

Best March Quarter Revenue and Earnings in Apple History

CUPERTINO, California—April 22, 2009—Apple® today announced financial results for its fiscal 2009 second quarter ended March 28, 2009. The Company posted revenue of $8.16 billion and a net quarterly profit of $1.21 billion, or $1.33 per diluted share. These results compare to revenue of $7.51 billion and net quarterly profit of $1.05 billion, or $1.16 per diluted share, in the year-ago quarter. Gross margin was 36.4 percent, up from 32.9 percent in the year-ago quarter. International sales accounted for 46 percent of the quarter’s revenue.

In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone™ and Apple TV® over their estimated economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $9.06 billion of “Adjusted Sales” and $1.66 billion of “Adjusted Net Income.”

Apple sold 2.22 million Macintosh® computers during the quarter, representing a three percent unit decline from the year-ago quarter. The Company sold 11.01 million iPods during the quarter, representing three percent unit growth over the year-ago quarter. Quarterly iPhone units sold were 3.79 million representing 123 percent unit growth over the year-ago quarter.

“We are extremely pleased to report the best non-holiday quarter revenue and earnings in our history,” said Peter Oppenheimer, Apple’s CFO. “Apple’s financial condition remains very robust, with almost $29 billion in cash and marketable securities on our balance sheet. Looking ahead to the third fiscal quarter of 2009, we expect revenue in the range of about $7.7 billion to $7.9 billion and we expect diluted earnings per share in the range of about $.95 to $1.00.”

[Cinematographer]

Did anyone say "recession"?

Great numbers, Apple.