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AAPL Stock: 102.13 ( + 1.24 )

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Apple posts $430M profit on strong iPod, Mac growth

updated 04:30 pm EDT, Tue October 11, 2005

Apple posts $430M profit

Apple today reported the highest revenue and earnings in the company's history, posting a $430 million quaterly profit ($0.50 per diluted share) on increased revenues of $3.68 billion--a more than 50 percent increase from the year-ago revenues ($2.35 billion) and 400 percent increase over the year-ago quarterly profits of $106 million ($0.13 per diluted share). Apple shipped 1,236,000 Mac units and 6,451,000 iPods during the quarter, representing 48 percent growth in Macs and 220 percent growth in iPods over the year-ago quarter. "We're thrilled to have concluded the best year in Apple's history, with 68 percent year-over-year revenue growth and 384 percent net profit growth," said Steve Jobs, Apple's CEO. "This is the direct result of our focus on innovation and the immense talent and creativity at Apple. We could not be more excited about the new products we're working on for 2006." [updated]

Apple also said that quarterly gross margins were 28.1 percent, up from 27.0 percent in the year-ago quarter and thati nternational sales accounted for 40 percent of the quarter's revenue. The statement said that earnings per share benefited by $.12 from several tax items related to net deferred tax assets, tax reserves, and a revision to the full year tax rate estimated in prior quarters.

For fiscal 2005, the Company generated revenue of $13.93 billion and a net profit of $1.335 billion, reflecting annual growth of 68 percent and 384 percent, respectively, and representing the highest yearly annual revenue and net profit in the Company's history.

"We're very pleased to report 48 percent year-over-year growth in Mac shipments in Q4, as well as our 10th consecutive quarter of record iPod sales," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the first quarter of fiscal 2006 which will span 14 weeks, we expect revenue of about $4.7 billion. We expect GAAP earnings per diluted share of about $.46, including an estimated $.03 per share expense impact from non-cash share-based compensation, translating to non-GAAP EPS of about $.49."




by MacNN Staff

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Comments

  1. Ganesha

    Joined: Dec 1969

    0

    And Apple Stock...

    Is dropping after hours... Guess Apple didn't beat the street by enough...

  1. MacnTX

    Joined: Dec 1969

    0

    iPod

    The problem for a change was with iPod sales. The street expected 7.5-8.0 million, but it ended up being "only" 6.451 million.

    On the other hand, Mac sales were again stronger than projected.

  1. shmoolie

    Joined: Dec 1969

    0

    afterhour trading

    I don't bother with worrying about afterhour trading stats because they are just people short selling or taking quick profits. Apple exceeded forecasts for all categories and their predictions for the next quarter were pretty good too.

  1. Armas

    Joined: Dec 1969

    0

    Revenue Number!!!

    If you watch these guys, wall street, they are watching really closely.... Rev was expected at 3.74 B but came in at 3.68 Billion - which spooks the market ( and sell programs kick in if stock goes down x dollars - making it exaggerated - plus it's amateur hour - after hours low volumes make manipulations extreme ) iPod is fine, Apple was switching from iPod Mini - and clearing out stocks, and starting iPod Nano - which was expected to be under 1 million for month 1 - and a LOT higher next 3 months.... So, considering deliberately lowering iPod inventory - for transition - sales were awesome ( may take a few hours to explain it to wall street though )

  1. Jonathan-Tanya

    Joined: Dec 1969

    0

    total unit sales for year

    1st quarter 1,046,000 2nd quarter 1,070,000 3rd quarter 1,182,000 4th quarter 1,236,000

    4,534,000 sold for FY2005

    assuming a 'modest' 40% unit sale increase for FY2006 would translate to: 6,347,000 units sold.

    Not bad, maybe it will be even better.

  1. jono_mt

    Joined: Dec 1969

    0

    Shoulda bought an iPod...

    ...Instead of the stock. At least I'd have something cool to play music on and I would have helped make up the top-line revenue shortfall. :-) I hope shmoolie is right about after-hours stats. Personally, I think it's great the company made big bux without the additional revenue. Seems like they're reaching some new economies of scale...if you bother looking at the financials.

  1. shmoolie

    Joined: Dec 1969

    0

    re: Shoulda bought an IPo

    "Seems like they're reaching some new economies of scale...if you bother looking at the financials."

    Apple is in a groove and has been for a couple of years now. The nice thing about this is that the economies of scale, as you put it can help accelerate this - kind of comparable to using drag to keep up with and surpass your opponents in racing, only on an economic scale. Because Apple is doing better on all fronts they don't need to sweat the little stuff as much and they can count on the fact that things tend to go in one direction easier than they are moved in another. So long as they don't make a huge blunder they can expect to see increases in revenue and profits and that will lead to even more as it continues to snowball. I predicted this exact scenario to my coworkers a year and a half ago and most did not believe me. I'm very happy with Apple's direction and Apple's stockholders have to be thrilled with the company - one of the top wall st. performers over the past 2 years. So, even if the stock takes a small hit some days it still is so far above where it was just 2 years ago that people have made money hand over foot from it - unless they were latecomers which happens to every stock.

    The final point in Apple's favor is that they are selling a tremendous number of Macs as well and increasing their overall market share. Sure, Apple will never get to be the majority computer but that's fine. Selling 5 million computers a year is nothing to sneeze at and if they can get it a bit higher each quarter then revenue and profits will accelerate not only for them but for peripheral and software makers too. The fact that Apple announced today that they forecast sales in the 6 billion dollar range this coming quarter is staggering for a company that just a few years ago was almost given up for dead.

  1. Dr.Funkenstein

    Joined: Dec 1969

    0

    Targets

    Another thing to realize is that if a company's earnings deviate too far from the anal cysts predictions, the stock will suffer.

    Yeah, it's Wall Street. They wouldn't know logic if it hit 'em with the broadside of a barn.

  1. MrKlin

    Joined: Dec 1969

    0

    puhlease

    " Another thing to realize is that if a company's earnings deviate too far from the anal cysts predictions, the stock will suffer.

    Yeah, it's Wall Street. They wouldn't know logic if it hit 'em with the broadside of a barn."

    Sigh. Another zealous kid posting pretending he knows something about finance when the best he can come up with is lame rhymes.

    A company's earning does not have to "deviate too far" - it can be one cent below the consensus earnings or the whisper and be punished. And don't pretend you are one iota smarter than the analysts. If you are, become one, earn gazillions, donate to charity and worthy cause, change reputation of industry, show them how it is done blah blah rather than snipe cowardly on Macnn.

  1. boazh

    Joined: Dec 1969

    0

    From Excite news...

    Apple has sales shortfall, shares fall

    Tuesday October 11, 7:23 PM EDT

    By Duncan Martell

    SAN FRANCISCO (Reuters) - Apple Computer Inc. on Tuesday reported quarterly profit quadrupled, but the iPod music player maker's revenue fell short of investor expectations and shares tumbled more than 10 percent.

    Apple shares have traded at a premium to other computer makers due to the iPod phenomenon, and analysts said any disappointment was likely to lead to a sell-off.

    "Expectations for Apple's results were pretty high and they needed to beat estimates for us to see a boost in the stock this afternoon," said Jim Fisher, a fund manager at Univest Wealth Management, who owns Apple shares. "Revenue came a bit lower than expected and that's why we are seeing Apple dip a bit lower after the bell."

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