Print 33 comment(s) - last by inperfectdarkn.. on Oct 21 at 8:10 AM

Apple shares fall in after hours trading

Apple today reported revenue of $28.27B for the fourth quarter and $6.62B in net profit ($7.05 per diluted share). These numbers compare quite favorably to $20.34B and $4.31B ($4.64 per diluted share) for the same quarter last year.
Gross margins for Apple during Q4 were 40.3 percent.
During the quarter, Apple sold 17.07 million iPhones (21 percent growth year-over-year), 11.12 million iPads (166 percent growth), 4.89 million Mac computers (26 percent growth), and 6.62 million iPods (27 percent decline).

“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s CEO. “Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”
Speaking of the iPhone 4S, Apple announced yesterday that it sold over four million of the smartphones during its first weekend of availability -- this was over twice the number for the iPhone 4's initial rollout in 2010.
Despite the good news coming out Cupertino today, investors weren't too terribly impressed. Analysts were expecting revenue of $29.69B and earnings per share of $7.39. They also expected quarterly iPhones sales to be in the 18 million to 20 million range.

Apple shares are down over $26 in after hours trading.

Sources: Apple, CNBC

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RE: seems high
By Mathos on 10/18/2011 5:21:55 PM , Rating: 3
That was referring to the 17.07m total for the year I think. But this article also clearly points out some of the major issues that are causing our economy to be screwed. Namely the shareholders QQing about their ungodly high expectations not being met.

RE: seems high
By ClownPuncher on 10/18/2011 5:22:35 PM , Rating: 2
And so much weight being given to predictions made by market analysts.

RE: seems high
By BrgMx5 on 10/18/2011 5:37:48 PM , Rating: 4
That's 17.07m for the quarter only

RE: seems high
By Reclaimer77 on 10/18/2011 7:23:09 PM , Rating: 2
I can't blame them. Apple is a terribly overvalued company currently, just look at their market cap. The bubble will burst, but you can't blame them for wanting to keep it as high as possible as long as possible.

Not sure how this "screws" the economy though because in good times the "QQ" is there too. But that's fine, everyone has their own scapegoat lately for why things are bad.

RE: seems high
By yomamafor1 on 10/18/2011 8:04:46 PM , Rating: 2
Exactly. People especially like to take their gauntlet to the administration, and blame everything on it, even though it is pretty obvious the blames lie somewhere else....

RE: seems high
By TakinYourPoints on 10/19/2011 6:31:23 AM , Rating: 2
It isn't overvalued based on any technical or fundamental metric. It is surprisingly lowly valued for a tech. It's PE and PEG ratios are below other major techs like Google, Amazon, and Oracle, and growth continues to accelerate at a fast rate. The stock price is actually conservatively justified by its gross revenue and net profit.

Investor sentiment is not running it up irrationally, it is actually holding the price down based on fear that it is running ahead of itself. This is why you see consolidations for long periods of time like bouncing around the $300 level for almost a year before another leg up, even though its profits have long justified the price that it is at now.

The same actually applies to IBM. It has had a similar run up in stock price over the last three years, but it is still conservatively priced and justified by their balance sheet.

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