Apple Reports 2Q 2019 Results: $11.56B Profit on $58B Revenue as Services Revenue Hits All-Time High

[MacRumors]

Apple today announced financial results for the second fiscal quarter of 2019, which corresponds to the first calendar quarter of the year.

For the quarter, Apple posted revenue of $58.0 billion and net quarterly profit of $11.6 billion, or $2.46 per diluted share, compared to revenue of $61.1 billion and net quarterly profit of $13.8 billion, or $2.73 per diluted share, in the year-ago quarter.

Gross margin for the quarter was 37.6 percent, compared to 38.3 percent in the year-ago quarter, with international sales accounting for 61 percent of revenue. Apple also declared an increased quarterly dividend payment of $0.77 per share, up from $0.73. The dividend is payable on May 16 to shareholders of record as of May 13.

In addition to the increase in the dividend payment, Apple says it has authorized another $75 billion for share repurchases.

This is the second quarter since Apple changed the way it reports its results, with the company no longer providing unit sales data for iPhone, iPad, and Mac. As a result, Apple is only providing revenue figures for its various segments, leaving analysts to estimate unit sales based on their own calculations.

"Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record," said Tim Cook, Apple's CEO. "We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services. We're looking forward to sharing more with developers and customers at Apple's 30th annual Worldwide Developers Conference in June."

Apple's guidance for the third quarter of fiscal 2019 includes expected revenue of $52.5-54.5 billion and gross margin between 37 and 38 percent.

Apple will provide live streaming of its fiscal Q2 2019 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Apple earnings call recap ahead...

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Article Link: Apple Reports 2Q 2019 Results: $11.56B Profit on $58B Revenue as Services Revenue Hits All-Time High

 

[Baymowe335]

Beat again guys. $58B was on the higher end of their guidance and they beat EPS handily.

Hate on.

 

[Rogifan]

Wow pretty soon iPhone will be less than 50% of Apple revenues.

 

[I7guy]

Great job Apple...amid the doom and gloom here. Your guidance seemed to be spot on.

 

[DeepIn2U]

Great job Apple...amid the doom and gloom here. Your guidance seemed to be spot on.

Very good results in comparison to a year ago! VERY pleased.
now reading on ..

 

[Veinticinco]

That’s a lot of dongles and watch straps. Penny-pinching Tim will be sitting back and doing his best Mr Burns impersonation.

 

[realtuner]

Spin that, haters.

Apple killing it once again.

 

[JPack]

So right in the middle of their guidance range of $55 to $59 billion. Year over year of 5% decline. Looks like services aren't ramping as quickly as hardware is dropping.

 

[SoyCapitanSoyCapitan]

AMD also beat expectations and up 4% after hours.

 

[danuff]

I’m impressed. Way to go, Apple!

 

[DocMultimedia]

Argh. Dividend increase of only 5%. But the up 5% after hours is nice. They'd better spend all their buyback money.

 

[DeepIn2U]

Tim Cook, Apple's CEO. "We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services. We're looking forward to sharing more with developers and customers at Apple's 30th annual Worldwide Developers Conference in June."

It's time iOS for iPad gets FULL Personal Computer setup and love from Apple!
1. Intel is pretty much on the ropes having it's last hoora on modems, leadership seems to be a joke.
2. Apples A12 & A12X is on par for compute level performance and if not better with imbedded GPU performance.
3. A13 ... is going to be 5nm if not smaller with close to 30% (pulling this of course of thin air and previous 7yr performance increases) better.

Apple's vision of the iPad ... the initial Navigator concept is finally ready to replace the Mac for light users ... time to give it it's due justice ... as a slow transition.

 

[mikethemartian]

Very good results in comparison to a year ago! VERY pleased.
now reading on ..

Why is it very good? It is slightly lower than last year.

 

[macduke]

That yellow-orange services monster is taking over. At this rate I wonder if Apple will even sell hardware in 10 years? Makes me sick.

 

[lunarworks]

Services are double the revenue of the Mac. Yet, we still have people here telling them to ditch services and focus on the Mac...

(I've love it if the Mac lineup got more attention, but this is how things are.)

 

[44267547]

Services at 54% is astounding. It’s obvious Apples growth with Apple Pay, App Store and now they are expanding into other forms of media, shows that the future is not just hardware anymore.

 

[nickgovier]

.

 

[ryanwarsaw]

I believe it on the iPads the new iPad Pro is a slick machine. It already replaces my Macbook which I killed with a beer spill. Thought about getting it's keyboard replaced under the current KB program. But then I thought to myself what's a computer?

 

[The Game 161]

Impressive but certainly wasn’t expecting anything else.

 

[44267547]

The back to back quarterly decline in revenue and profit wasn't quite as bad as analysts expected.

Analysts tend to mudsling, that’s one of the reasons I never read too deep into their ‘numbers and guidance’ figures, and it’s usually when Apple debunks anything they have projected.

 

[macfacts]

Beat again guys. $58B was on the higher end of their guidance and they beat EPS handily.

Hate on.

Congratulations, so apple correctly guessed how much they would make. But it is still lower than what they made last year this time. Peak iPhone has already happened.

 

[xpiogus]

Apple is doomed

 

[Benjamin Frost]

Services are supposed to be the big thing. Yet if my maths serves me correct, they were up 16% year-on-year, but only 5% over the last quarter. That is anaemic growth.

They are guiding to a slight revenue increase next quarter, which would be better than the 5% decrease this quarter. Not exactly setting the world alight.

 

[Baymowe335]

Congratulations, so apple correctly guessed how much they would make. But it is still lower than what they made last year this time. Peak iPhone has already happened.

Apple is moving from iPhone to Services, iPad, and wearables.

Y/Y

• Services were up 16%,
• Wearables up 30%,
• iPad up 20%

But keep living in the past...the market is sending the stock higher. iPhone was a tough compare because even last year in calendar Q1, the iPhone X was still extremely in demand.

 

[Rogifan]

Wow CNBC guests are crapping all over Apple and Tim Cook. They had like a 5 minute discussion and every guest was negative. Wall Street kept hammering Apple for not growing services. Now that Apple is growing services Wall Street is grumbling that the services won’t be any good and still obsessing over iPhone sales. CNBC is so anti-Apple it isn’t even funny.