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Apple to Announce Q1 2014 Earnings on January 27

MacRumors

MacRumors

macrumors bot
Original poster
Apr 12, 2001
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Apple updated its investor relations page today to note that it will announce its earnings for the first fiscal quarter (fourth calendar quarter) of 2014 on Monday, January 27. The earnings release typically occurs just after 4:30 PM Eastern Time following the close of regular stock trading, and the conference call is scheduled to follow at 5:00 PM Eastern / 2:00 PM Pacific.

appleq1call.jpg
MacRumors will provide running coverage of the earnings release and conference call.

The release will provide a look into initial iPad Air and Retina iPad mini sales during their first quarter of availability as well as iPhone 5s and 5c sales throughout the holiday. Apple reported a record number of iPhone/iPad sales during fiscal 2013, at 150 million iPhones and 71 million iPads.

In its fiscal fourth-quarter earnings call, Apple guided expected revenue of $55-58 billion and gross margin between 36.5 and 37.5 percent. If the company meets even the low end of that guidance, it will count as the strongest quarter for Apple in history.

Article Link: Apple to Announce Q1 2014 Earnings on January 27
 
Article Link
https://www.macrumors.com/2014/01/06/apple-q1-2014-earnings/
the8thark

the8thark

macrumors 601
Apr 18, 2011
4,628
1,735
If the company meets even the low end of that guidance, it will count as the strongest quarter for Apple in history.

Every quarter is tipped as the strongest quarter ever though.
 
Z

Z400Racer37

macrumors 6502a
Feb 7, 2011
711
1,664
Heh heh, couldn't help it. :p
 

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luckydcxx

luckydcxx

macrumors 65816
Jun 13, 2013
1,158
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I am really looking forward to seeing the stock plummet after they announce record sales and revenue. It is unbelievable. :mad:
 
IJ Reilly

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
the8thark said:
If the company meets even the low end of that guidance, it will count as the strongest quarter for Apple in history.

Every quarter is tipped as the strongest quarter ever though.
Click to expand...

Exactly, because of a lack of care about definitions of financial terms. They seem to be referring to revenues, but revenues matter far less than earnings. The forecast of about $13.80 EPS is about the same as last year, so if this proves to be the case, then it's a no-growth year for Apple.
 
cmChimera

cmChimera

macrumors 601
Feb 12, 2010
4,273
3,762
I'm hoping that, after this, there is a keynote soon regarding the iWatch.
 
P

proline

macrumors 6502a
Nov 18, 2012
630
1
Should be neat to see what a full quarter of Johnny Ive's first full design, iOS 7 + iPhone 5S, can do. No doubt sales will far eclipse any of Apple's previous efforts.

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IJ Reilly said:
Exactly, because of a lack of care about definitions of financial terms. They seem to be referring to revenues, but revenues matter far less than earnings. The forecast of about $13.80 EPS is about the same as last year, so if this proves to be the case, then it's a no-growth year for Apple.
Click to expand...
Being able to sustain profits at or near record levels is a major achievement in tech. Staying as one of the two most profitable American companies is no small feat.
 
K

KPOM

macrumors P6
Oct 23, 2010
18,028
7,869
IJ Reilly said:
Exactly, because of a lack of care about definitions of financial terms. They seem to be referring to revenues, but revenues matter far less than earnings. The forecast of about $13.80 EPS is about the same as last year, so if this proves to be the case, then it's a no-growth year for Apple.
Click to expand...

Which is reflected in the current stock price. Apple hasn't revised its guidance so odds are that it will fall somewhere in the range. Analysts will likely look more toward their projection for the following quarter.

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cmChimera said:
I'm hoping that, after this, there is a keynote soon regarding the iWatch.
Click to expand...

Well, Samsung also just announced a line of 12.2" tablets with support for running up to 4 simultaneous applications, and an interface a little bit like Windows 8.1. So if the rumors about the 12.9" iPad Pro are true, then we might see that keynote first.
 
C

clibinarius

macrumors 6502a
Aug 26, 2010
671
70
NY
IJ Reilly said:
Exactly, because of a lack of care about definitions of financial terms. They seem to be referring to revenues, but revenues matter far less than earnings. The forecast of about $13.80 EPS is about the same as last year, so if this proves to be the case, then it's a no-growth year for Apple.
Click to expand...

Sort of. Depends on the nature of the added expenditures. If they're reducible sunk costs, for instance, then it shows growth. If they're perpetual, I agree, no growth, though it does help the broader economy.
 
H

hydr

macrumors regular
Feb 25, 2009
226
95
Holy Cow! My flux capacitor is working, I just got back from the future. TC presented these numbers, and the share was up almost 3.8% in after-market.

55m iphones
24m ipads
5,5m macs
eps 14,74
rev 59b


If this post shows before January 27, my time machine is a GOGO.
 
BaldiMac

BaldiMac

macrumors G3
Jan 24, 2008
8,761
10,890
IJ Reilly said:
The forecast of about $13.80 EPS is about the same as last year, so if this proves to be the case, then it's a no-growth year for Apple.
Click to expand...

That's not actually true. Apple announced that they will be deferring an additional 900 million in revenue this quarter as a result of making OS X and some other software free with new devices. So if EPS is flat, that would still indicate significant growth.
 
cmChimera

cmChimera

macrumors 601
Feb 12, 2010
4,273
3,762
KPOM said:
Well, Samsung also just announced a line of 12.2" tablets with support for running up to 4 simultaneous applications, and an interface a little bit like Windows 8.1. So if the rumors about the 12.9" iPad Pro are true, then we might see that keynote first.
Click to expand...
I'm curious about the iPad pro rumors. I think it will cause a major shake up in relation to the Macbook Air. But that said, I expect this in October.

The Doctor11 said:
I want an iWatch really bad but they won't say anything about it until at least June.
Click to expand...

I know I'm in the minority on this, but I can't see Apple going another year with radio silence for the first half of the year.
 
IJ Reilly

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
proline said:
Being able to sustain profits at or near record levels is a major achievement in tech. Staying as one of the two most profitable American companies is no small feat.
Click to expand...

Sustaining profits isn't an achievement. The name of the game is growth.

KPOM said:
Which is reflected in the current stock price. Apple hasn't revised its guidance so odds are that it will fall somewhere in the range. Analysts will likely look more toward their projection for the following quarter.
Click to expand...

Investors will consider guidance, but flat earnings will likely fail to impress. The point being, calling every quarter a "record" is misleading, especially if only revenues are being considered and earnings are in fact flat.

clibinarius said:
Sort of. Depends on the nature of the added expenditures. If they're reducible sunk costs, for instance, then it shows growth. If they're perpetual, I agree, no growth, though it does help the broader economy.
Click to expand...

One time expenses can be broken out in financial reports, but I haven't seen in the past where this has made a huge difference in Apple's financials.

BaldiMac said:
That's not actually true. Apple announced that they will be deferring an additional 900 million in revenue this quarter as a result of making OS X and some other software free with new devices. So if EPS is flat, that would still indicate significant growth.
Click to expand...

Well, it certainly appears to be true that the article is taking only revenues into account, since it quotes only those estimates along with gross margins. I also don't see investors being too impressed with differed revenues. I don't know how they book revenue from giving away software at any point in the future.

In any case, I think we all know why AAPL is stuck in low gear. It's because they are no longer posting 20-30% YoY earnings growth. In reality they are posting little to none. Kind of puts the concept of a "record quarter" into proper perspective.
 
P

proline

macrumors 6502a
Nov 18, 2012
630
1
IJ Reilly said:
Sustaining profits isn't an achievement. The name of the game is growth.
Click to expand...
Time and time again you have to be reminded of basic concepts. Sustainability is of utmost importance to investors, future growth, which is highly speculative, is the domain of speculators. You seem unable to differentiate the two. As an actual AAPL investor, I consider it to be significant progress for Apple to move from making $13 billion in profit on $55 billion revenue to making $13 billion profit on $58 billion revenue. The latter is a more sustainable margin and means I will be able to collect my dividend for years to come.

Of course, you've shown your true lack of concern for Apple's long-term prospects many times, such as here where you argue that Apple need not having any savings for the event where they become unprofitable, as such a situation is so serious that should it occur they might as well just give up. Of course AAPL investors know that Apple has lost money 3 times in the past- after the original Mac, in the mid 90s, and after the G4 cube and come back stronger each time. A good understanding of Apple as a company is a requirement to be an investor.
 
IJ Reilly

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
proline said:
Time and time again you have to be reminded of basic concepts. Sustainability is of utmost importance to investors, future growth, which is highly speculative, is the domain of speculators. You seem unable to differentiate the two. As an actual AAPL investor, I consider it to be significant progress for Apple to move from making $13 billion in profit on $55 billion revenue to making $13 billion profit on $58 billion revenue. The latter is a more sustainable margin and means I will be able to collect my dividend for years to come.

Of course, you've shown your true lack of concern for Apple's long-term prospects many times, such as here where you argue that Apple need not having any savings for the event where they become unprofitable, as such a situation is so serious that should it occur they might as well just give up. Of course AAPL investors know that Apple has lost money 3 times in the past- after the original Mac, in the mid 90s, and after the G4 cube and come back stronger each time. A good understanding of Apple as a company is a requirement to be an investor.
Click to expand...

Time and again, you are utterly wrong.

I've been an investor in AAPL for nearly 17 years, so I will match my interest in Apple's longterm prospects against anyone here, including you. Especially you, as it turns out.
 
T

TTile

macrumors 6502
Jan 23, 2013
269
0
IJ Reilly said:
In any case, I think we all know why AAPL is stuck in low gear. It's because they are no longer posting 20-30% YoY earnings growth. In reality they are posting little to none. Kind of puts the concept of a "record quarter" into proper perspective.
Click to expand...

You have to remember that Apple continues to expand unit sales of iPhones and iPads yoy. Most of the reduction of earnings has come in the form of lower margins which is mostly due to the fact that Samsung is essentially the sole provider of many components making up the iPhone and iPad. Continuing to expand unit sales is not a bad position to be in AND Apple will solve the margin issue over time as it patterns with other component manufactures (already is happening).

Also that 20-30% growth figure you're quoting were during years where Apple had recently introduced a new product category. The iPad (Apple's most recent foray into a new category) is nearly 5 years old and the iPhone is approaching a decade. These categories are mature for Apple and they will like see single digit growth in the future. That being said, if/when Apple introduces a new category (tv, wearable, etc) their growth will rocket right back to 20-30% per year (for 2-3 years at least).

Finally, to tie it all together, if Apple maintains its huge sales volumes and moderate (worst case scenario) growth they could easily offer a 4-5% dividend with all that cash they generate. I'm sure investors would be more than happy to receive a quarterly fat check + enjoy continued stock price increases (let's say 5% bare minimum). A guaranteed 10% return a year isn't too bad.
 
IJ Reilly

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
TTile said:
You have to remember that Apple continues to expand unit sales of iPhones and iPads yoy. Most of the reduction of earnings has come in the form of lower margins which is mostly due to the fact that Samsung is essentially the sole provider of many components making up the iPhone and iPad. Continuing to expand unit sales is not a bad position to be in AND Apple will solve the margin issue over time as it patterns with other component manufactures (already is happening).

Also that 20-30% growth figure you're quoting were during years where Apple had recently introduced a new product category. The iPad (Apple's most recent foray into a new category) is nearly 5 years old and the iPhone is approaching a decade. These categories are mature for Apple and they will like see single digit growth in the future. That being said, if/when Apple introduces a new category (tv, wearable, etc) their growth will rocket right back to 20-30% per year (for 2-3 years at least).

Finally, to tie it all together, if Apple maintains its huge sales volumes and moderate (worst case scenario) growth they could easily offer a 4-5% dividend with all that cash they generate. I'm sure investors would be more than happy to receive a quarterly fat check + enjoy continued stock price increases (let's say 5% bare minimum). A guaranteed 10% return a year isn't too bad.
Click to expand...

You are correct, the lack of new products and the maturing of their existing products is the reason for the lackluster growth. Unfortunately, even for the patient investor, it seems like Godot would get here faster than a new product from Apple. In the meantime I am consoling myself with the dividend.

As for returns, I would not consider anything guaranteed. Except for treasury notes, I suppose.
 
P

proline

macrumors 6502a
Nov 18, 2012
630
1
IJ Reilly said:
You are correct, the lack of new products and the maturing of their existing products is the reason for the lackluster growth. Unfortunately, even for the patient investor, it seems like Godot would get here faster than a new product from Apple. In the meantime I am consoling myself with the dividend.
Click to expand...
Patient?! LOL. It's been less than four years since the iPad. I guess for a speculator such as yourself that's a long time indeed. For us investors, it's nothing. We waited four years between the iMac and the iPod and 6 years between the iPod and the iPhone (not to mention 17 years between the original Mac OS and OS X). We've been reward well for our patience. As for the speculators, some of them win, some of them lose. I don't shed a tear for any of them.
 
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