Apple Quarterly Results Fall 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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  • DroKing
    No really? Wutcha thunk... profits always come down from time to time. I got fed up with hearing people acting like Apple is invincible... Im glad the downturn is here now to shut these stupid investors and blind rabid fans up.
  • eddieroolz
    Wow that took some time for this news to show up.

    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.
  • rosen380
    Well given that they grew revenue by 22% and net profit by 21% versus the same quarter last year, I'd actually say they did pretty well.
  • derkman
    The reason iPhone sales are down is because the Appledrones are waiting for their precious iPhone 5 release. I will sit and watch the the iPhone conference and laugh at it with my Galaxy S III by my side.
  • ankaJ42
    "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)."

    "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?
  • freggo
    Also shows you how well the so called 'Analysts' do their jobs.
    These guys seem to have a tendency to be optimistic.
  • velosse
    Asian Fail!
  • southernshark
    Apple actually did great. The Analysts are just crazy, putting out such high numbers in the first place. Apple's sales were up by a large margin year over year. They weren't up as high as some of the analysts expected though.

    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.
  • tbq
    I wish I had the problem of only increasing my net earnings 21% from the year before. Most individuals in the US haven't done as well, so the only problem for Apple right now is that some group of analysts thought they'd do better.
  • dalethepcman
    Apple's own analysts set the bar at 37.2 billion, actual sales were 35 billion. That's missing the mark by a huge amount, and why Apple stocks have dropped $25 today. Saying "everyone is waiting for the iphone 5" is just another spin. I agree with southernshark, the fad part of apple is rotting.

    Personally I'm waiting for wp8 to see how it integrates with xbox and w8.