Tuesday, October 21, 2008

Apple Reports Fourth Quarter 2008 Earnings

Apple reported their earnings close to 2pm Pacific today. Apple
forecast earnings of $1.00 per share and $7.8B and analysts were
expecting $1.11 per share and $8.05B in revenue which Apple beat,
posting $1.26 per share on $7.9B in revenue. For the next quarter,
they forecast a wide range- from $1.06 to $1.35 per share and $9-10B
in revenue. Apple sold 2.6M Macs, 11M iPods and 6.9M iPhones in the
quarter- which Steve was quick to point out was more phones than RIM
sold in the same quarter. Apple's stock was halted at about 2:35
Pacific, the press release came out around 2:45 and shares quickly
shot up and finished up $12.12 to $103.61 at the close of the after
hours session, after dropping $6.95 to $91.49 during regular trading.
Gross margin was 34.7% which was stronger than expected and Apple
finished the quarter with more than $25B in cash. Apple also reported
their non-GAAP "adjusted revenue and net income" which was $11.7B and
$2.44B which represents what Apple would have reported if they didn't
account for revenue from the iPhone and AppleTV on a subscription
basis. Interestingly, Steve Jobs spoke during the conference call and
along with Tim Cook and Peter Oppenheimer answered many questions
about the current economic environment and how it might affect Apple's
future earnings, highlighted Apple's strong growth in both Mac and
iPhone sales, mentioning once again that Apple sold more phones than
RIM in the quarter and that by revenue Apple is the third largest
mobile phone company in the world.

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