Tag - Earnings
Apple revenues fell by $11 billion year-over-year to $50.6 billion in its second 2016 fiscal quarter, reporting its first drop in quarterly revenue since 2003, the company has announced. The results missed consensus analyst estimates of $52.2 billion in revenue, though they fell within Apple's guidance of between $50 billion and $53 billion. Profits were $13.6 billion, while earnings per share was reported as $2.32, above estimates. Gross margin fell incrementally, from 40.1 percent to 39.4 percent over the same quarter last year.
Later today, Apple will posting its revenue and earnings for the company's fiscal second quarter of 2016, which ended on March 31. Following warnings from analysts and the company alike that 2016 would be a "tough compare" year following the iPhone 6 (since it was the first "phablet-sized" iPhone line, releasing much pent-up demand), the iPhone maker is expected to report its first year-over-year drop in revenues since 2003. Sales of the iPod, and later iPhone, buoyed the company's fortunes and pushed it to new quarterly records for the past 13 years.
At a "Town Hall" meeting with employees following the company's Q1 earnings report, Apple CEO Tim Cook reportedly rejected the notion -- long favored by analysts -- that Apple needs a "pared down" and inexpensive iPhone model in order to attract buyers in developing or "emerging" markets like India. While most of the meeting dealt with a rehash of information given during the analyst call, some was concerned with employee matters like retention incentives, as well as saying the Apple TV and tvOS both have "bright" futures.
Apple revenues rose by $1.3 billion year-over-year to $75.9 billion in its first 2016 fiscal quarter, which ended in December following the usual holiday rush, the company has announced. Profits were $18.4 billion, while earnings per share was reported as $3.28. The results failed to beat consensus analyst estimates of $77.4 billion in revenue, though they fell within Apple's guidance.
Wall Street analysts are heading into the quarterly results conference call for Apple's fiscal Q1 2016 results with an expectation that the company will once again set an all-time record for quarterly revenues, handily beating last year's $74.6 billion in earnings by a current consensus estimate of $2 billion. A polling of a broader range of analysts by Fortune magazine offers an even more rosy $77.4 billion, but many analysts are concerned that iPhone sales will not top last year's results of 74.5 million units.
Apple has announced that it will reveal its fiscal Q1 earnings on January 26 at 2PM PT (5PM ET) with its usual live audio webcast that is available for public streaming. The December quarter included the holiday buying season, but investors are worried that Apple will be unable to match last year's blockbuster $74.6 billion in revenue and $18.04 billion in revenue, which was the best quarterly earnings and profit any company has ever recorded. Last year's Christmas buying season was boosted by the introduction of the larger iPhone 6 line into China and the US.
Apple revenues rose 25 percent year-over-year to $51.5 billion in its fourth fiscal quarter, which ended in September with just a week or so of availability for its latest iPhones, the company has announced. Profits were up 30 percent to $11.1 billion, while earnings per share climbed from $1.42 to $1.96, a 38 percent increase. The results beat consensus analyst estimates of $51.11 billion in revenue. International sales jumped to 62 percent of revenue, fueled by strong growth in China.
A new forecast from analysts and a late prediction from investment firm Cowen and Company have combined to move the needle slightly upwards in terms of the optimism of guesses on Apple's earnings for its fiscal Q4 quarter, which will be reported later today (MacNN will, of course, have live coverage). Compared to a recent polling of analysts by Fortune magazine, the new consensus rises just over the top of Apple's guidance, now at $51 billion in revenue.
Another interesting week at MacNN brings us plenty to talk about on Episode 25 of The MacNN Podcast, ranging from the FCC approval of the AT&T/DirecTV deal for no clear reason (but with a bunch of conditions), to our new column "My Stupid Fault." We also include a full report on Apple's fiscal Q3 and the uncalled-for drop in the stock, the results of our testing of Apple's new third-party SSD Trim support, and more.
Last month, Apple announced that its financials for fiscal Q2 2015 would be released on April 27. Just one day before the conference call, analysts are rushing to get their predictions out regarding what is very likely to be another monster quarter for the company. The short version is that the iPhone will continue to drive the lion's share of revenue and grow sales from the year-ago quarter, while the downward pressure on earnings from the iPad will continue -- and nobody's really sure what's going to happen with the Apple Watch.