Apple Beats Forecasts, Makes $39.2B in Q1 2012

Apple CEO Tim Cook. Source - smh.com.au
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Apple CEO Tim Cook. Source - smh.com.au
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Apple CEO Tim Cook. Source - smh.com.au

Apple announced today its earnings for its second fiscal quarter of 2012. The impressive numbers beat industry estimates but were down from the Cupertino company’s previous record-breaking quarters. Revenues amounted to $39.2 billion with a net profit of $11.6 billion in Q1 2012. This translates to earnings of $12.30 per diluted share. Gross margin was 47.4 percent compared to 41.4 percent in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.

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Apple sold 35.1 million iPhones, a 88 percent unit growth over the year-ago quarter and 11.8 million iPads in the quarter representing a 151 percent jump over the year-ago quarter. This while quietly shifting 4 million Macs. Sales were up 7% compared to the quarter a year ago. Apple also sold 7.7 million iPods.

The bump in the first-quarter forecast will ripple forward to the rest of the year. For calendar 2012, J.P. Morgan is looking at iPhone sales of 138.2 million, up from the prior estimate of 128.7 million. And iPad sales could hit 69.6 million, compared with an earlier forecast of 58.6 million.

[quote]We are thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter,” said Tim Cook, Apple’s CEO. “The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver.”[/quote]

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The record March quarter generated $14 billion in cash flow from operations, growing Apple’s cash pile which is now topping a cool $100 billion. Apple expects revenue in the coming third quarter to be about $34 billion with diluted earnings per share of about $8.68.

Apple’s share price blipped to over $600 as it beat analysts predictions. Its market capitalization tops over $560 billion, making it the most valuable company and technology company in the world. In March this year, Apple announced plans for quarterly dividend payouts of $2.65 per share sometime in the Q4 2012, which begins on July 1, 2012. Apple’s Board of Directors also authorized a $10 billion share repurchase program which will commence in 2013 (begins on September 30, 2012). The share repurchase program will be executed over three years.

Apple will provide a replay of its Q2 2012 financial results conference call in two weeks time.

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