Tuesday, January 22, 2008

Apple Reports First Quarter 2008 Earnings

Today Apple reported their earnings for the first quarter of their fiscal 2008 year. Apple announced through a press release that they brought in revenue of $9.6B and earnings per share of $1.75. Analysts were expecting an average of $1.61 per share with revenue of $9.46 billion. In last quarter's conference call, Apple said that they expected EPS of $1.42 and revenue of $9.2 billion, which seemed uncharacteristically aggressive to analysts during the conference call but now seems conservative compared to what analysts were expecting. Apple said that they shipped 2.3M Macs, 22.1M iPods and 2.3M iPhones and gross margin was 34.7%. For the next quarter they expect revenue of $6.8B and $0.94 EPS. On Monday, markets around the world suffered steep losses, mostly between four and eight percent while markets in the United States were closed for the Martin Luther King holiday. Today Apple shares, which had dropped as low as $146 this morning, closed down $3.91 to $157.45 and immediately after the press release was issued in after-hours they dropped around $20 and traded between $136 and $140 throughout the conference call. The majority of the questions during the conference call focused on Apple's perceived weak guidance and the effect of the broader weaker U.S. economy on Apple's earnings as well as some analysts' concerns about iPod sales.

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