Apple Quarterly Results Fall Short of Expectations
Apple's latest numbers show growth but the company has fallen short of expectations
Apple has announced its third quarter financial results and they're a wee bit surprising. Though we've grown used to Apple posting record breaking financial results, the numbers actually represent an earnings miss. The San Francisco Chronicle reports that Apple, a company that usually blows analysts predictions out of the water, has only fallen short of analyst expectations twice in ten years. Still, it's not all bad news: While Apple may have fallen short of expectations, the company did see positive growth for the third quarter of fiscal year 2012 (ended June 30).
The Cupertino-based company reported quarterly revenue of $35 billion, and a quarterly net profit of $8.8 billion (or $9.32 per diluted share). These numbers compare to $28.6 billion in revenue and a net profit of $7.3 billion ($7.79 per diluted share) for the same period in 2011. Gross margin for the quarter was 42.8 percent compare to last year's 41.7 percent. Apple's own expectations for Q3 were $34 billion in revenue and diluted earnings per share of about $8.68. For Q2 of 2012, Apple posted quarterly revenue of $39.2 billion and quarterly net profit of $11.6 billion, or $12.30 per diluted share.
Apple's board also declared a cash dividend of $2.65 per share. Payable on August 16, the dividend is available to stockholders of record at the close of business on August 13, 2012.
"We're continuing to invest in the growth of our business and are pleased to be declaring a dividend of $2.65 per share today," said Peter Oppenheimer, Apple’s CFO. "Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65."
A whopping 62 percent of the quarter's revenue stemmed from international sales. This is down 2 percent from last quarter and equal to the same quarter in 2011.
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I have to really wonder if Apple has dug a grave for themselves in doing so well in previous quarters. It simply sets a very high bar - and the bar keeps going higher and higher. At some point, the bar will have to drop down.
Regardless of the revenue that was short of expectations though, it's certainly doing better than every other phone manufacturer, nonetheless.
"Apple's own expectations for Q3 were $34 billion in revenue and diluted earnings per share of about $8.68."
35>34, 9.32>8.68 How is this missing expectations? Am I missing something here?
These guys seem to have a tendency to be optimistic.
I think the main culprit is Samsung, which had a bang out quarter. Also Apple is not doing as well in laptop/desktop sales as they had hope, which I take as actually being a good thin for the other computer makers.
Anyway, Apple is part real and part fad and the fad part might be wearing thin.
Personally I'm waiting for wp8 to see how it integrates with xbox and w8.
I'd bet all of these "analysts" hold Apple stock so it's in their best personal interest to exaggerate a bit.
From the article:
"The Cupertino-based company reported quarterly revenue of $35 billion"
Personally I think Apple will regress in time Steve Jobs shoes are to big fill but there's no reason why they can't continue to keep launching new Mac's for home users and professionals as these never go out fashion and have a steady and loyal fanbase. Shame the same can't said of the iphone which is getting commercially gang rapped by Android based phones.
Problem is Android isn't making the phones, you can't just add them all together and say they are making more sales, since when did HTC sales count towards Samsung sales? Samsung are the only ones getting close with the SGS3 in terms of a single handset, but Samsung as a whole is selling more for sure
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http://www.gsmarena.com/samsung_broke_smartphone_sales_record_in_q2_extends_gap_to_apple-news-4532.php
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In 1 year Samsung has overtaken Apple in smartphone sales and is gaining even more speed, it makes sense to have a range of handsets to suit everyone then you can capture a bigger market, I have been saying Apple should have done an iPhone Nano for years and maybe with 2 handsets they could have fought a better fight, instead of relying on dodgy lawsuits to hold Samsung back
Nice profit non the less, each iSheep 100$ dollar give apple 25$ and that's after brainwashing err i mean marketing costs, foxcon burial costs and the like!
That's after the lawyer sucking from other companies, its not sales!
The following site has the break-down; the $35 B is sales and related services around their products
http://www.engadget.com/2012/07/24/apple-q3-2012-hardware-sales-numbers/
They expected net profit to go up 25%, thus they missed the mark and share prices go down. God bless modern markets that function purely on speculations.