Apple Announces Record Q4 Earnings, Investors Aren't Impressed
October 18, 2011 4:51 PM
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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 $26 in after hours trading
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RE: Problem with stock market
10/19/2011 9:38:22 AM
Even more frustrating (from my point of view, at least), is when a company makes a bunch of money on their products, but rather than show a huge profit for the year, they reinvest the money into R&D, etc. THEN Wall Street punishes them for not showing a huge profit.
I guess the moral of the story is that watching Wall Street is a good way to keep track of the stock market, but you've got to be careful trying to get anything else from those numbers.
RE: Problem with stock market
10/19/2011 11:30:41 AM
Wall Street IS an irrationnal beast. Learn the concepts, do your homework and profit from it.
Apple had the tendency of doing conservative forecasts and then beating them. Over time people get used to that and expect more of the same. When one day the forecast are not beaten, speculators and day traders, that bet the house during the day that Apple would still beat its forecast, they become disapointed and sell off in a frenzy in after hours. Apple actually traded down on at least its 3 past quarterly earning results that i recall. THATS WHEN YOU BUY!
In the long term sound economics always have the upper hand over Wall Street irrational exuberance and CNBC'S fanboyism. Apple is a good company with record results and despite Job's death you can still expect growth from its iPad/iPhone/Mac and itune music/App store for a couple of years, then its still a good stock to buy at 400$ which is almost only 10 times forward earnings. On average stocks trade at 20 times earnings and in normal condition a growth stock like apple would trade up to 30 times earnings.
Oups, 408$, already went back up. See?
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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