Apple Reports 2Q 2017 Results: $11B Profit on $52.9B Revenue, 50.8M iPhones

[MacRumors]

Apple today announced financial results for the second fiscal quarter of 2017, which corresponds to the first calendar quarter of the year. For the quarter, Apple posted revenue of $52.9 billion and net quarterly profit of $11.0 billion, or $2.10 per diluted share, compared to revenue of $50.6 billion and net quarterly profit of $10.5 billion, or $1.90 per diluted share, in the year-ago quarter.

Gross margin for the quarter was 38.9 percent compared to 39.4 percent in the year-ago quarter, with international sales accounting for 65 percent of revenue. Apple also declared an increased quarterly dividend payment of $0.63 per share, up from $0.57. The dividend is payable on May 18 to shareholders of record as of May 15.

In addition to the increase in the dividend payment, Apple says it will once again expand its share repurchase authorization by an additional $50 billion and the company says it expects to spend a total $300 billion in cash under its overall capital return program by the end of March 2019.

Apple sold 50.8 million iPhones during the quarter, down slightly from 51.1 million a year earlier, while Mac sales rose slightly to 4.20 million units from 4.03 million units in the year-ago quarter. iPad sales continued to decline, falling to 8.92 million from 10.25 million.

"We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus," said Tim Cook, Apple's CEO. "We've seen great customer response to both models of the new iPhone 7 (PRODUCT)RED Special Edition and we're thrilled with the strong momentum of our Services business, with our highest revenue ever for a 13-week quarter. Looking ahead, we are excited to welcome attendees from around the world to our annual Worldwide Developers Conference next month in San Jose."

Apple's guidance for the third quarter of fiscal 2017 includes expected revenue of $43.5-45.5 billion and gross margin between 37.5 and 38.5 percent.

Apple will provide live streaming of its fiscal Q2 2017 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference call transcript herein...

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Article Link: Apple Reports 2Q 2017 Results: $11B Profit on $52.9B Revenue, 50.8M iPhones

 

[andy.ringwood]

Apple are doomed. Face it guys, it's a fact...

 

[dannyyankou]

It's on the higher end of expectations and their stock is down? Weird.

 

[Shlooky]

Congrats Apple on another successful quarter!

 

[rezwits]

Apple are doomed. Face it guys, it's a fact...

I was going to say the same thing with my first "doomed" comment ever, but eh you beat me to it...

 

[shk718]

stocks gonna go down expectations were for revenue of 53.1 and iphone sales of 51.4. but they did show a bit of growth compared to last year!!!

 

[Rocketman]

My takeaway is there is about 3m unit carry forward to iPhone 8 expectations and the prior high unit sales was about 78m or so (I forget). So come October we will likely see 89m units all at high margin. Buy AAPL on any pullback. Accumulate slowly and be patient.

 

[DotCom2]

stocks gonna go down

Buying opportunity.

 

[satchmo]

Mac sales up 1% over last year. Yay!!!

 

[Michael Scrip]

I wonder if Palm would still be around if they could profit $11,000,000,000 in just 3 months.

 

[DotCom2]

The purple 5% "Other" is cables.

 

[KPOM]

It's on the higher end of expectations and their stock is down? Weird.

iPhone sales were slightly below expectations and the guidance for Q3 was weaker than expected.
[doublepost=1493758050][/doublepost]

stocks gonna go down expectations were for revenue of 53.1 and iphone sales of 51.4. but they did show a bit of growth compared to last year!!!

After hours activity is fairly muted. A stock goes up or down 1.5% on a single day for lots of reasons.

 

[elvislives]

Mac sales up 1% over last year. Yay!!!

haha thats so crap. Apple better get a move on... Pro users have left the Building!

 

[Appleaker]

I am so glad that the Mac is the product line that rose in sales

 

[dannyyankou]

iPhone sales were slightly below expectations and the guidance for Q3 was weaker than expected.
[doublepost=1493758050][/doublepost]
After hours activity is fairly muted. A stock goes up or down 1.5% on a single day for lots of reasons.

Oh, ok. I don't know much about finance, haha. I just saw the story earlier today about the estimate of $51.5 and $53.5 billion. Perhaps it's a good buying opportunity if the iPhone 8 is a hit.

 

[xbankaiz]

The purple 5% "Other" is cables.

 

[longofest]

It's on the higher end of expectations and their stock is down? Weird.

Never look at what they have done - look at where they are going. The stock market cares about what their forecasts for the coming quarters are.

Apparently their guidance is underwhelming.

 

[SBlue1]

Just think about this for a second. 11 thousand millions. Profit. In a quarter.

 

[SoyCapitanSoyCapitan]

Stock always dip on earnings. It's the way hedge funds and day traders like to scam the market. They scare small investors into selling and then they buy back at a lower price.

Marketwatch for the last 10 minutes has been posting deliberate fake news that the stock has dropped between 1.5 to 2 percent even though it's less than 1 percent. That's how you scam the public. Scare them one day, hype the next day, scare the next, repeat.

See screenshot.

As for 'estimates'. That's another scam the investment institutions play on you. They get the original estimate from the company. Then add some more on top to make you buy more shares and pump up the price. Then when the earnings can't match the estimates that the institutions fabricated, the stock drops and the fat boys win again.

Rinse and repeat because people are so dumb after decades of this scam gullible people still scratching their heads.

But if you are going long long long on monopolist tech stocks you can't really lose, especially if they buy up all the competition.

 

[satchmo]

Perhaps it's a good buying opportunity if the iPhone 8 is a hit.

I think there's a good chance of success. Unless Apple does something idiotic like put Touch ID on the back of the phone.
There's probably millions of iPhone 6 and 6s owners ready to upgrade wanting a new form factor.

 

[sw1tcher]

It's on the higher end of expectations and their stock is down? Weird.

EPS beat ($2.10 vs $2.02 estimate), but the $52.9 billion in revenue missed the $53.02 billion estimate.

The 50.763 million iPhone sales missed the 52 million estimate.

The 4.199 million Mac sales slightly missed 4.2 million estimate.

iPad sales down again despite Apples best efforts (?) to try to reverse them (e.g. new iPads, lower starting prices, etc).

3rd quarter revenue guidance (between $43.5 billion and $45.5 billion) missed analyst expectations of $45.6 billion

 

[Rogifan]

And of course the stock is down in after hours trading.

 

[routine_analyst]

Market saturation with little to no product revolution. Odd how that works out.

 

[Jsameds]

Mac sales up 1% over last year. Yay!!!

I don't get it. I just don't get it.

 

[kidaje]

if it was amazon or google who had a result like this, the stocks would be up with at least 5%