Apple Posts $1 Billion in Profit

MacRumors · 06:56 PM

Apple announced their financial results for the 1st fiscal quarter of 2007 ending on December 30, 2006.

Apple posted record revenue of $7.1 billion and record net quarterly profit of $1.0 billion, or $1.14 per diluted share. These results compare to revenue of $5.7 billion and net quarterly profit of $565 million, or $.65 per diluted share, in the year-ago quarter. Gross margin was 31.2 percent, up from 27.2 percent in the year-ago quarter. International sales accounted for 42 percent of the quarter’s revenue.

Apple shipped 1,606,000 Macintosh computers and 21,066,000 iPods during the quarter, representing 28 percent growth in Macs and 50 percent growth in iPods over the year-ago quarter.

Quote:

“We are incredibly pleased to report record quarterly revenue of over $7 billion and record earnings of $1 billion,” said Steve Jobs, Apple’s CEO. “We’ve just kicked off what is going to be a very strong new product year for Apple by launching Apple TV and the revolutionary iPhone.”

“We generated over $1.75 billion in cash during the quarter to end with $11.9 billion,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2007, we expect revenue of $4.8 to $4.9 billion and earnings per diluted share of $.54 to $.56.”

A live streaming conference call of the Q1 2007 Financial Results will take place at 2:00 p.m. PST on Wednesday, January 17, 2007 at http://www.apple.com/quicktime/qtv/earningsq107.

Full notes available here

psychofreak · Jan 17, 2007, 04:38 PM

Whazam!

A few more weeks of poket money and I can buy them out!

Earendil · Jan 17, 2007, 04:39 PM

I love you, Apple.

Teh Don Ditty · Jan 17, 2007, 04:41 PM

Those numbers are staggering for Apple. Congrats!

combatcolin · Jan 17, 2007, 04:42 PM

Now make even more money by releasing a consumer upgradable Mac.

I wish.

Peace · 07:17 PM

Good numbers but I noticed they are projecting MUCH lower earnings for the next quarter.

$7.1 Billion for Q1 2007
$4 Bilion for the next quarter.

Christmas rush?

Daveway · Jan 17, 2007, 04:46 PM

21 million iPods?!?

That's way higher than any analyst predicted. They were saying 16.5m which was way too low considering last year's 14m.

Waahooo for stock holders.

Allotriophagy · Jan 17, 2007, 04:46 PM

With that profit, Apple might just be able to afford an iPhone and the two year contract charges.

Stella · 07:17 PM

Congrats.

BTW: when was the last article regarding Apple's imminement ( spelling ) demise?!

macshark · Jan 17, 2007, 04:48 PM

Quote:

Originally Posted by combatcolin

Now make even more money by releasing a consumer upgradable Mac.

I wish.

Not a bad idea. If there is anything negative in what is probably the best earnings release in the history of Apple, the CPU sales numbers did not increase over the previous quarter. We need cheaper iMacs and a headless single processor Core 2 Duo model.

Squonk · Jan 17, 2007, 04:49 PM

Quote:

Originally Posted by Peace

Good numbers but I noticed they are projecting MUCH lower earnings for the next quarter.

$7.1 Billion for Q1 2007
$4 Bilion for the next quarter.

Christmas rush?

Why yes it was the holiday rush!

Edit: And lot's of people holding onto their $$$ for the iPhone later this year.

herbalizer · Jan 17, 2007, 04:49 PM

I hope their stock doesn't go down.

LagunaSol · Jan 17, 2007, 04:50 PM

Oh crap, stellar financial news from Apple. That means my stock will take a dive now, thanks to the bizarre mentality of those who buy and sell Apple shares.

With AAPL and investors:

Bad news = bad
Good news = bad
Fantastic news = really bad

Ah well, things will rebound, then head for infinity and beyond.

Daveway · Jan 17, 2007, 04:50 PM

I do find next quarter's profits quite scarilly low. Last years Q2 was 4.3m. Yes, that means lower profits than last year. Esh.

Also, I'm not too excited about Mac growth. Although they are growing, they went from 1.2m to 1.6m macs. I thought it would have been better...thats all.

Webcast in 10mins.

freeny · Jan 17, 2007, 04:51 PM

Quote:

Originally Posted by herbalizer

I hope their stock doesn't go down.

Of course it will. It always does.

Teh Don Ditty · Jan 17, 2007, 04:53 PM

AAPL is up around $2.00 in after hours trading

Daveway · Jan 17, 2007, 04:53 PM

Quote:

Originally Posted by herbalizer

I hope their stock doesn't go down.

Even with the amazing numbers, the stock could very well go down. Which I wouldn't mind so I could buy even more shares.
Wallstreet looks forward and forward (4m profit) isn't exactly a rosy future.

Rocketman · Jan 17, 2007, 04:53 PM

Mac sales were UP something like 27% over the prior year quarter which is how comparisons are made "fair".

Margin growth! That means Apple has pricing power.

BIG unit sales growth, BIG revenue growth, BIG, make that huge, PROFIT growth.

Wall street is a whore for growth.

Consumers are whores for features and immediate gratification.

Apple seems to be delivering.

Rocketman

VanMac · Jan 17, 2007, 04:54 PM

Very Nice.

Go AAPL!

macshark · Jan 17, 2007, 04:54 PM

Quote:

Originally Posted by Peace

Good numbers but I noticed they are projecting MUCH lower earnings for the next quarter.

$7.1 Billion for Q1 2007
$4 Bilion for the next quarter.

Christmas rush?

The expected revenue is 4.8-4.9B for the next quarter, and the expected profit is .54-.56 per share.

In comparison, the revenue for the Jan-Mar quarter in 2006 was 4.36B and the profit was .47 per share.

Even assuming that Apple is not low-balling as usual, they are expecting more than 10% revenue growth and more than 17% earnings growth next quarter compared to the corresponding quarter in 2006.

mwswami · Jan 17, 2007, 04:54 PM

Quote:

Originally Posted by Daveway

21 million iPods?!?

That's way higher than any analyst predicted. They were saying 16.5m which was way too low considering last year's 14m.

Waahooo for stock holders.

I am no analyst but I predicted 18-20M ipods mid November on AppleInsider forum.

Doctor Q · Jan 17, 2007, 04:55 PM

Do we ever learn about Apple's income from the iTunes Store?

arn · Jan 17, 2007, 04:55 PM

Quote:

Originally Posted by Doctor Q

Do we ever learn about Apple's income from the iTunes Store?

I don't think they ever break it out.

arn

Daveway · Jan 17, 2007, 04:56 PM

Quote:

Originally Posted by Doctor Q

Do we ever learn about Apple's income from the iTunes Store?

Nope. It's included under their "music business" results.

liven2 · Jan 17, 2007, 04:57 PM

I hope I am wrong but every year after they announce there Q1 results about 2 to 3 weeks later if not days later the Apple stock will plummet. It will most likely do the same again this year as it has for the last three years in a row. The Market seems to think that Apple did really well so therefore there is no way than can keep up the continuous growth. So they go innto this doom and gloom mode Last year the stock took a dive so it will probably do it again.. It always comes back up but it takes like until late spring/summer before we start to see it rise again... SLowly!! Sigh

I hope I am wrong!

Jan 17, 2007, 04:39 PM	#3
Earendil macrumors 65816 Join Date: Oct 2003 Location: On the Columbia River, WA	I love you, Apple. __________________ PowerBook 1.25ghz/1.25 RAM/80gig HD/160gb External FW800/ 4gb iPod Mini/ 20" WS Dell LCD "ooo! They have the internet on computers now!" - Homer J. Simpson

Jan 17, 2007, 04:41 PM	#4
Teh Don Ditty macrumors Demi-God Join Date: Jan 2007 Location: Long Island, NY	Those numbers are staggering for Apple. Congrats! __________________ Disgusting.

Jan 17, 2007, 04:42 PM	#5
combatcolin macrumors 68020 Join Date: Oct 2004 Location: Northants, UK	Now make even more money by releasing a consumer upgradable Mac. I wish. __________________ PC 24" Dell WS Monitor 500GB Lacie Triple 40 GB iPod, 1st gen iMac Bought sister a 1.25Ghz eMac Wide Aspect F810 Camera 1GB XD Card

Jan 17, 2007, 04:45 PM	#6
Peace macrumors Demi-God Join Date: Apr 2005 Location: On top of the Storm Peaks waiting for the Time-Lost Proto Drake	Good numbers but I noticed they are projecting MUCH lower earnings for the next quarter. $7.1 Billion for Q1 2007 $4 Bilion for the next quarter. Christmas rush? Last edited by bousozoku : Jan 17, 2007 at 07:17 PM. Reason: no need to quote that

Jan 17, 2007, 04:46 PM	#7
Daveway macrumors 68040 Join Date: Jul 2004 Location: New Orleans / Lafayette, La	21 million iPods?!? That's way higher than any analyst predicted. They were saying 16.5m which was way too low considering last year's 14m. Waahooo for stock holders. __________________ Spare me my life. MBP 2.2 glossy, Alu Macbook 2.4, iMac G5, iPhone3GS 32gb white, iPodz

Jan 17, 2007, 04:38 PM	#2
psychofreak Retired Join Date: May 2006 Location: London	Whazam! A few more weeks of poket money and I can buy them out!

Jan 17, 2007, 04:46 PM	#8
Allotriophagy Registered User Join Date: Sep 2006	With that profit, Apple might just be able to afford an iPhone and the two year contract charges.

Jan 17, 2007, 04:47 PM	#9
Stella macrumors 68040 Join Date: Apr 2003 Location: Toronto, Canada	Congrats. BTW: when was the last article regarding Apple's imminement ( spelling ) demise?! __________________ iPhone: The cell phone for communists and censorship Last edited by bousozoku : Jan 17, 2007 at 07:17 PM. Reason: no need to quote that

Jan 17, 2007, 04:49 PM	#12
herbalizer macrumors newbie Join Date: Apr 2005 Location: Kirkland, WA	I hope their stock doesn't go down.

Jan 17, 2007, 04:50 PM	#13
LagunaSol macrumors 65816 Join Date: Apr 2003	Oh crap, stellar financial news from Apple. That means my stock will take a dive now, thanks to the bizarre mentality of those who buy and sell Apple shares. With AAPL and investors: Bad news = bad Good news = bad Fantastic news = really bad Ah well, things will rebound, then head for infinity and beyond.

Jan 17, 2007, 04:53 PM	#16
Teh Don Ditty macrumors Demi-God Join Date: Jan 2007 Location: Long Island, NY	AAPL is up around $2.00 in after hours trading __________________ Disgusting.

Jan 17, 2007, 04:53 PM	#18
Rocketman macrumors 68020 Join Date: Dec 2001 Location: Claremont, CA	Mac sales were UP something like 27% over the prior year quarter which is how comparisons are made "fair". Margin growth! That means Apple has pricing power. BIG unit sales growth, BIG revenue growth, BIG, make that huge, PROFIT growth. Wall street is a whore for growth. Consumers are whores for features and immediate gratification. Apple seems to be delivering. Rocketman

Jan 17, 2007, 04:54 PM	#19
VanMac macrumors 6502a Join Date: May 2005 Location: Rampaging Tokyo	Nice Very Nice. Go AAPL! __________________ Broken Arrow Ranch Chervic Technologies Inc. 17" MBP 2.6GHz C2D HDef 200GB_7200 2GB RAM 80GB iPod Classic Broken Arrow Ranch

Jan 17, 2007, 04:55 PM	#22
Doctor Q macrumors god Join Date: Sep 2002 Location: at the table with countless relatives	Do we ever learn about Apple's income from the iTunes Store? __________________ "You've just been abducted, of course you need crepes!" -- Walter Bishop

Jan 17, 2007, 04:57 PM	#25
liven2 macrumors member Join Date: Jan 2002	Stock will go down does every year!! I hope I am wrong but every year after they announce there Q1 results about 2 to 3 weeks later if not days later the Apple stock will plummet. It will most likely do the same again this year as it has for the last three years in a row. The Market seems to think that Apple did really well so therefore there is no way than can keep up the continuous growth. So they go innto this doom and gloom mode Last year the stock took a dive so it will probably do it again.. It always comes back up but it takes like until late spring/summer before we start to see it rise again... SLowly!! Sigh I hope I am wrong!

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