Apple 1Q 2008 Results: Record $1.58 Billion Profit

[MacRumors]

Apple posted revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share during the 1Q 2008 (ending December 29th). These results compare to revenue of $7.1 billion and net quarterly profit of $1 billion, or $1.14 per diluted share, in the year-ago quarter. Gross margin was 34.7 percent, up from 31.2 percent in the year-ago quarter. International sales accounted for 45 percent of the quarter’s revenue.

Other notes:
- 2,319,000 Macs shipped (44% unit growth and 47% revenue growth)
- 22,121,000 iPods shipped (5% unit growth and 17% revenue growth)
- 2,315,000 iPhone sales

"We're thrilled to report our best quarter ever, with the highest revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "We have an incredibly strong new product pipeline for 2008, starting with MacBook Air, Mac Pro and iTunes Movie Rentals in the first two weeks."

"Apple's revenue grew 35 percent year-over-year to $9.6 billion, an increase of almost $2.5 billion over the previous December quarter’s record-breaking results," said Peter Oppenheimer, Apple's CFO. "Our strong results produced cash flow from operations of over $2.7 billion during the quarter, yielding an ending cash balance of over $18.4 billion. Looking ahead to the second quarter of fiscal 2008, we expect revenue of about $6.8 billion and earnings per diluted share of about $.94."

We will be highlighting notes of interest from the pending conference call here.

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[namX]

Macs still the big market...

[gkarris]

Apple stock rebound!!!

[QCassidy352]

this should give the stock price a shot in the arm...

[yayaba]

Getting burned after hours. Damn this economy and all its pessimism.

[Queso]

2.319 million eh? How does that compare with the Gartner/IDC estimates?

[John01021988]

Whenever I have the money, I would invest on Apple, just like Forrest Gump did

[stagi]

Originally Posted by gkarris

Apple stock rebound!!!

Rebound? Shares are down 13% in after hours

[FreeState]

Originally Posted by stagi

Rebound? Shares are down 13% in after hours

This is normal - given the US recession its bound to be worse IMO.

[Martin C]

Originally Posted by gkarris

Apple stock rebound!!!

Yup, let's see how the markets go tomorrow. AAPL stock has been on a steady downfall after MacWorld.

[zeppiecr]

The guidance was so low...

[Crawn2003]

Originally Posted by gkarris

Apple stock rebound!!!

Dude, as of 4:46 P.M. EST Apple (AAPL) was trading at $140.55 a share, the lowest it hit after hours was 134.81!

Rebound isn't starting now.

Apple shares sink 13%

~Crawn

[gkarris]

Originally Posted by stagi

Rebound? Shares are down 13% in after hours

That's because of the overall market. It will probably start going back up to where it belongs, especially since Apple has proven that it can survive tough times through its innovations.

[me_94501]

$9.6 billion in revenue?? Just to think only a few years ago Apple couldn't pull in that much in a year!

[Unspeaked]

Originally Posted by gkarris

That's because of the overall market. It will probably start going back up to where it belongs, especially since Apple has proven that it can survive tough times through its innovations.

No, the $5 it was down during the regular session is because of the overall market.

The $15 it's down after-hours is directly tied to this earnings report.

[Queso]

Originally Posted by gkarris

That's because of the overall market. It will probably start going back up to where it belongs, especially since Apple has proven that it can survive tough times through its innovations.

However, the valuation of AAPL is based on future income continuing to increase, evidenced by the high P/E ratio. If the markets think revenues and income are levelling off, the stock is going to tank.

[HenMaster6000]

ipods not so hot...
i see a deluge of "death of ipod" articles coming.

[Yankees 4 Life]

why is all my money going down the drain?? my stock has plunged 64 dollars in 2 weeks!

[errol]

Stock is down 16% in after hours!!! WTF!

[NewSc2]

Originally Posted by gkarris

That's because of the overall market. It will probably start going back up to where it belongs, especially since Apple has proven that it can survive tough times through its innovations.

Surviving isn't the only thing it has to do. Apple's P/E ratio is really high, and with the economy going down, people would be more apt to purchase lower-priced alternatives (mp3 players, phones, laptops, etc.). This could more be viewed as a stock correction than a collapse.

[Frisco]

Originally Posted by HenMaster6000

ipods not so hot...
i see a deluge of "death of ipod" articles coming.

Yeah the iPod is starting to get some serious competition.

[shawnce]

Originally Posted by errol

Stock is down 16% in after hours!!! WTF!

Analyst projected above what Apple stated for iPods, etc. (need to go dig up Apple's guidance for Q1 to see if Apple missed its own estimates but I doubt they did)

[TheBonk]

Originally Posted by John01021988

Whenever I have the money, I would invest on Apple, just like Forrest Gump did

Yep, this is some kinda fruit company, huh?

[MarkMS]

I knew I should have sold my few shares at $200.

Glad to hear that this is Apple's highest revenue and earnings report.

[Chiggs]

You have to love a quarter when they sold 2 million+ Macs. It seems like only a couple of years ago that Steve Jobs was making a big deal out of selling 1 Million Macs in a quarter.

The stock will continue to bounce around in my mind - especially given the US Economy and the uncertainty around how the MacBook Air will sell. For a long term buyers though, $135-$140 seems like a great price given it was selling north of $200 just a few weeks ago. It's getting Apple at 30% off !!!