Apple Reports 1Q 2019 Results: Nearly $20B Profit on $84.3B Revenue, Second-Best Quarter Ever Despite Earnings Warning

[MacRumors]

Apple today announced financial results for its first fiscal quarter of 2019, which corresponds to the fourth calendar quarter of 2018.

For the quarter, Apple posted revenue of $84.31 billion and net quarterly profit of $19.965 billion, or $4.18 per diluted share, compared to revenue of $88.3 billion and net quarterly profit of $20.1 billion, or $3.89 per diluted share, in the year-ago quarter.

The earnings report comes after Apple issued a rare warning on January 2 that revenue for the quarter would come in at least $5 billion below the company's original guidance, with Apple pointing to a number of factors including the later launch of the iPhone XR, general weakness in China, and fewer upgrades as customers took advantage of Apple's reduced pricing on battery replacements in 2018 to extend the lives of their current phones.

Even with the earnings warning, the quarter was the second-best in Apple's history in terms of revenue and profit, trailing only the first fiscal quarter of 2018.

Gross margin for the quarter was 38.0 percent, compared to 38.4 percent in the year-ago quarter, with international sales accounting for 62 percent of revenue. Apple also declared an upcoming dividend payment of $0.73 per share, payable February 14 to shareholders of record as of February 11.

This quarter also marks a change in the way Apple reports its results, as the company is no longer providing unit sales data for iPhone, iPad, and Mac. Apple argues that quarterly unit sales are not an accurate indicator of the underlying strength of Apple's business, but critics have suggested the move is an attempt to make it less obvious that Apple is making up for sagging unit sales by selling more expensive devices.

"While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter's results demonstrate that the underlying strength of our business runs deep and wide," said Tim Cook, Apple's CEO. "Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That's a great testament to the satisfaction and loyalty of our customers, and it's driving our Services business to new records thanks to our large and fast-growing ecosystem."

Apple's guidance for the second quarter of fiscal 2019 includes expected revenue of $55-59 billion and gross margin between 37 and 38 percent. That revenue figure is near or slightly below analysts' expectation of around $59 billion. Apple's stock is currently up about 2.5 percent in after-hours trading following the release.

Apple will provide live streaming of its fiscal Q1 2019 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference call recap ahead...


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Article Link: Apple Reports 1Q 2019 Results: Nearly $20B Profit on $84.3B Revenue, Second-Best Quarter Ever Despite Earnings Warning

 

[Silver Idaten]

ApPlE iS dOoMeD!

 

[44267547]

Apple had an excellent quarter, aside from the China downfall. 20 billion in profit and the overall services growth margin is outstanding.

So much for the ‘Doomed’ theory, again.

 

[Baymowe335]

Incredible numbers despite the bruise in China:

• Profit of $20B (flat y/y)
  
• Record EPS of $4.18/share (up from $3.89)
• Services are up 20% y/y
• Mac UP 8% Y/Y
• iPad UP 17%
• Wearables up 33.3%
• China indeed was down $4.8B y/y, indicating it WAS a result of China that they missed Revenue.
• America Revenues are up y/y

It was CONFIRMED to have been responsible for a $4.8B revenue decline, indicating the entire revenue miss (84.3B versus $88.1B last year) was a result of China.

Other markets were flat to up. America Up, Asia Pacific Up, Europe and Japan Down Slightly.

 

[mariusignorello]

ApPlE iS dOoMeD!

Absolutely doomed!

Seriously, every business has ups and downs. And sometimes major ups and downs. Innovation across product lines will be key going forward. Something that makes iPhone blow up again (no, I don’t mean batteries ) and something that ties the ecosystem together even closer will be necessary. They can do it.

 

[shareef777]

“fewer upgrades as customers took advantage of Apple's reduced pricing on battery replacements in 2018 to extend the lives of their current phones.“

This right here leads me to think that sales will start declining as people generally don’t need the latest and greatest as performance can be increased with a battery swap. Phones are already as powerful as some computers so I can see people keeping them just as long as a computer.

 

[GuruZac]

Incredible how small Mac sales have become as a part of their revenue. I don’t know what’s more astonishing, that fact about the Mac sales, or the fact people are dooming and glooming over a company that just posted $84.3B in earnings in a single quarter.

 

[jonblatho]

Services are up 30% y/y

No, only 19.1% ($9.128B in 2018Q1 vs. $10.875B in 2019Q1). Still impressive, but no need to exaggerate.

 

[gsurf123]

I'd like to bring in $84 billion in one quarter and have someone tell me I'm doomed.

 

[DNichter]

Solid report, as always. Apple has set themselves up nicely for the future, wish I kept the stock.

 

[donlab]

Time to cash out! Too much dOoM!

 

[44267547]

Article quote:

“Even with the earnings warning, the quarter was the second-best in Apple's history in terms of revenue and profit, trailing only the first fiscal quarter of 2018.”

I think this above statement proves that for those who want to see Apple ‘fall hard’, they haven’t. They still continue to grow in services, and the fact that this is their second best quarter in Apples history, says more than enough to debunk all the naysayers.

 

[firewood]

Mac revenue is up! Not bad for selling product that is overpriced and outdated according to some here

Maybe Apple no longer has to make great computers, just stuff slightly better than the junk the competition tries to peddle

 

[DrJohnnyN]

AAPL FTW.

 

[sundog925]

only positive report I've seen on this blog site when others are reporting a 15% revenue fall during this last holiday quarter.

 

[Baymowe335]

No, only 19.1% ($9.128B in 2018Q1 vs. $10.875B in 2019Q1). Still impressive, but no need to exaggerate.

This is correct. The number I used was based on a old reporting methodology.

 

[JPack]

Inflection point hit.

 

[macduke]

I'm worried we're pushing China to the brink economically.

 

[Fusion79]

“fewer upgrades as customers took advantage of Apple's reduced pricing on battery replacements in 2018 to extend the lives of their current phones.“

This right here leads me to think that sales will start declining as people generally don’t need the latest and greatest as performance can be increased with a battery swap. Phones are already as powerful as some computers so I can see people keeping them just as long as a computer.

I predicted this when US carriers got rid of phone subsidies. So many people honestly thought iPhones were only $200 and happily upgraded every two years. There is just no reason anymore for most people to upgrade that frequently, especially at the prices these devices are selling for.

 

[now i see it]

Look familiar?

 

[thekeyring]

Article quote:

“Even with the earnings warning, the quarter was the second-best in Apple's history in terms of revenue and profit, trailing only the first fiscal quarter of 2018.”

I think this above statement proves that for those who want to see Apple ‘fall hard’, they haven’t. They still continue to grow in services, and the fact that this is their second best quarter in Apples history, says more than enough to debunk all the naysayers.

Also, their gross profit margin is essentially flat.

The idea that apple is ripping off its customers by charging “an extra” $300 for iPhone X-tier phones is not backed by evidence.

 

[zorox]

i hope all those click baiting you tubers make new videos apologizing for spreading fake news and jumping on the bandwagon.

It was also funny reading all the experts post on this forum saying how they are loosing money because of their higher mark ups since this clearly shows that tactic is working. If they can fix the china problems revenue will be even higher, so much for cheaper iPhones.

 

[The Game 161]

So apple not so bad after all? Shocker...

 

[BigMcGuire]

What? Only one page so far???? The Tim Cook needs to resign, Apple is doomed, prices too high threads were on page 10+ by now. WTF.

Ok maybe not page 10... but close.
[doublepost=1548799125][/doublepost]

i hope all those click baiting you tubers make new videos apologizing for spreading fake news and jumping on the bandwagon.

It was also funny reading all the experts post on this forum saying how they are loosing money because of their higher mark ups since this clearly shows that tactic is working. If they can fix the china problems revenue will be even higher, so much for cheaper iPhones.

They probably made more $ than my annual salary on those videos. So ... can't really blame them I guess.

 

[tito2020]

ApPlE iS dOoMeD!

Wonder who they paid off