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Apple Posts 4Q 2008 Earnings Results

LINK


Apple Beats Forecasts but Gives Weak Outlook

By CNBC.com with Wires | 21 Oct 2008 | 05:02 PM ET

Apple reported earnings that easily beat forecasts, but the company gave guidance for the current quarter that was well below expectations on both the profit and revenue sides.

Apple's profit jumped 26 percent in the last quarter, reaching $1.14 billion, or $1.26 per share. Sales jumped 27 percent to $7.9 billion in the three months that ended in September.

On the revenue side, Apple reported sales of $7.89 billion. That compares with sales of $6.217 billion last year.

The company got a huge boost from sales of its newest iPhone, which Apple says sold outsold the market-leading BlackBerry from Research in Motion.

Analysts surveyed by Thomson Reuters forecast income of $1.11 per share on $8.05 billion in revenue. In July, Apple gave its own forecast of earnings of $1 per share on $7.8 billion in sales.

Looking ahead, Apple said it expects to earnings in a range of $1.06 a share to $1.35 a share in its fiscal first quarter. Analysts had put Apple's profit for the quarter at $1.65 a share.

Apple now expects sales of between $9 billion and $10 billion in the current quarter, compared with Street expectations of $10.6 billion.

Shares of Apple were halted after the bell Tuesday. The Nasdaq-traded stock settled at $91.49, a decline of 7.06 percent.

Apple also told analysts in July to expect weaker margins linked to forthcoming products. Last week, the company showed off laptops with casings built from a single large hunk of aluminum. That could explain at least part of the margin softness, as Apple's investment in the new design and manufacturing process would cost more until production volume increases.

Apple's shares shed nearly 25 percent to end the quarter at $128.24. Since then, the stock has fallen roughly another 24 percent, hit hard by broader turmoil in the U.S. economy.
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$25B in cash and no debts... up from $19B...

And Notebooks went up in price because?! Not truly impressed, but good to see they aren't feeling the credit crunch too bad.

A good result for iPhone sales too. That is truly fantastic.
 
Okay, did I hear that or not? They have surpassed their goal of 10 million iPhones in the 2008 calendar year? I swear the dude on the conference call just said that. If so, I am impressed but here opens the whole can of worms about in 2008 or by 2008. I'm not trying to stir up a silly details discussion becauseI'm pretty impressed by this performance by both the iPhone and overall.
 
Since Apple is so flush with cash, surely they can afford to put a firewire port on the MB now? ;)
 
Over 1 billion dollars in a quarter? Where are the Senate investigations and calls for a windfall profits tax? No company should be doing this well while consumers are suffering in this economy! </sarcasm>

Good for Apple. Good for the country.
 
Looks like it's not really moving much either way in AH trading - $93 - 94 range.

EDIT: I take that back, it seems to be creeping into the $95 - 96 range, maybe even higher...
 
Next quarter will be even better

Did this well with older ipods through the first two months of the quarter and expectations of new laptops through the entire quarter. And, with an antiquated mini. Just think what they could do this quarter with all the new models and some kind of updated mini/desktop computer.
 
Unspeaked said:
Looks like it's not really moving much either way in AH trading - $93 - 94 range.
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Could anyone tell me what "after hours trading" is? Is it when the floor guys in the strange mesh shirts go home and the traders continue trading using automated trading like the rest of the world?

BTW: Jobs has taken the mike to re-emphasise the point about the difference between GAAP indicators and non-GAAP indicators and the positive outlook if referring to non-GAAP financial results. That's very significant I think.
 
Not to be stupid, but with figures like that, why has Apple not paid a dividend since 1995?

There's a huge war chest, with plenty of money for R & D and such like, so surely it's time to give shareholders some return.

(I'm not a shareholder, btw, so I've no axe to grind)
 
Apple is world's 3rd largest mobile phone provider by revenue (not units)- per Jobs on conference call.

200,000,0000th app to be downloaded within next few days.
 
j26 said:
Not to be stupid, but with figures like that, why has Apple not paid a dividend since 1995?

There's a huge war chest, with plenty of money for R & D and such like, so surely it's time to give shareholders some return.

(I'm not a shareholder, btw, so I've no axe to grind)
Click to expand...

That's true. It's time that investors get something back from Apple.

Don
 
Worlds largest mobile phone suppliers in revenue this quarter: 1. Nokia. 2. Samsung. 3. Apple. 4. Sony-Erikson. 5, 6: Can't remember. 7. RIM. :rolleyes:
 
Unspeaked said:
Yes, it was also on AppleInsider and a few other places.

I saw anywhere from $1.65 to $1.68 floated around prior to earnings.
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Just to be clear, the $1.65 estimate is for the Oct.-Dec. quarter, not the July-Sept quarter which was in the $1.11 range.

Apple beat the consensus in earnings per share, but missed in total revenue.
 
gnasher729 said:
Worlds largest mobile phone suppliers in revenue this quarter: 1. Nokia. 2. Samsung. 3. Apple. 4. Sony-Erikson. 5, 6: Can't remember. 7. RIM. :rolleyes:
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6 was Motorola.

Jobs says reception of new Mac Books has been dramatic in terms of demand.
 
rdowns said:
Apple is world's 3rd largest mobile phone provider by revenue (not units)- per Jobs on conference call.

200,000,0000th app to be downloaded within next few days.
Click to expand...

That's 200 million?

Not too shabby.

gnasher729 said:
Worlds largest mobile phone suppliers in revenue this quarter: 1. Nokia. 2. Samsung. 3. Apple. 4. Sony-Erikson. 5, 6: Can't remember. 7. RIM. :rolleyes:
Click to expand...

Pretty amazing. Barely 16 months in the market.
 
And $25 billion of cash safely in the bank with zero debt."

Gotta love that.

Good to see the sales going up so much from a year ago also.

Eric
 
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