Feeds

Apple tops estimates with earnings leap of 118 per cent

Wall Street moneymen looking a wee bit silly

Boost IT visibility and business value

Apple blew past even the most optimistic Wall Street earnings estimates for the first quarter of its fiscal 2012, posting revenues of $46.33bn, resulting in a quarterly net profit of $13.06bn, or $13.87 per share.

"We're thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs," said CEO Tim Cook in a statement accompanying the results.

"Apple's momentum is incredibly strong," Cook said – then added, teasingly, "and we have some amazing new products in the pipeline."

Sales and profits were significantly above what the Wall Street moneymen had expected. Fortune's averaging of the estimates of "six analysts with the best track records" came up with revenues of $41.87bn and earnings per share (EPS) of $11.57, based on sales of 31.73 million iPhones, 15.77 million iPods, 5.14 million Macs, and 14.17 iPads.

Apple sold 37.04 million iPhones in the quarter, along with 15.4 million iPods, 5.2 million Macs, and 15.43 million iPads. The only number that came in lower than estimates was that of iPod sales – and, quite frankly, who cares about those aging digital-music players?

Fortune's prognosticators were more optimistic than most. Analysts polled by FactSet Research, MarketWatch reported, predicted revenues of $39bn and an EPS of $10.06. The 40-plus analysts polled by Yahoo! Finance differed only slightly, guessing forecasting revenues of $38.85bn and an EPS of $10.08.

Back in October of last year, when announcing revenues of $28.27bn and EPS of $7.05 for the fourth quarter of its 2011 fiscal year, Apple CFO Peter Oppenheimer was more conservative still, projecting that revenues for the first fiscal quarter of 2012 – the quarter announced today – would be $37bn and EPS at "about" $9.30.

In retrospect, Oppenheimer's guidance, as the moneymen call it, might even be characterized as sandbagging. Apple's $46.33bn Q1 2012 revenues were 25 per cent over guidance, and EPS was nearly 50 per cent over guidance – 49.1 per cent, if you want to be exact.

Two more "Apple is kicking some serious hiney" stats: that $13.06bn net income figure is a cool 118 per cent increase over the $6bn in net income during the same period last year, and the 31.73 million iPhone sales represent a jump of 128 per cent from Q4 2011.

We can only assume that CEO Tim Cook must be enjoying his job – and that maybe some of those Wall Street analysts might need to start looking for new ones. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.