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Apple continues to put up impressive numbers

Over the past few months, Apple's stock value has been on a wild rollercoaster ride. AAPL crossed the $500/share threshold in early February, and passed by $600/share in March. The stock peaked at $644/share earlier this month, but has since plummeted back down to around $560/share (at market close today).
 
During Q1, Apple released its third generation iPad, which once again proved to be a sales blockbuster, breaking previous records set by the iPad 2. The company also released a revamped Apple TV during the quarter, but Apple’s “hobby” doesn’t exactly set enthusiasts’ hearts ablaze.
 
With that in mind, Apple today released its fiscal Q2 earnings report. The company reported revenue of $39.2 billion versus Wall Street estimates of $36.81 billion. Net profit rang in at $11.6 billion while earnings per share (EPS) came in at $12.10 versus a consensus of $10.04.
 
When it comes to device sales, the Cupertino, California-based company saw iPhone sales of 35.1 million (88 percent year-over year growth) -- during Q1, AT&T and Verizon alone activated 4.3 million and 3.2 million iPhones respectively. When it comes to the iPad, Apple recorded the sale of 11.8 million units.

 

 
Apple’s Mac business saw a seven percent year-over-year increase to 4 million units. On the other hand, Apple’s once red hot iPod business saw a 15 percent year-over-year decline to 7.7 million units.
 
“We’re thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter,” said Apple CEO Tim Cook. “The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver.”
 
AAPL is up over 6 percent in after hours trading to $598.


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RE: Magical Numbers
By Mitch101 on 4/24/2012 7:15:41 PM , Rating: 0
Hmm There is some of that Fish Smell

Apple said during its conference call tonight that it built iPhone inventory by 2.6 million units last quarter , to end the three-month period with 8.6 million units in stock .

Some analysts may be inclined to assume that the build in inventory puffed up numbers last quarter , even though Apple says that level of stock is merely what it needs to have adequate supply.

CEO Tim Cook and CFO Peter Oppenheimer did say that iPhone sales will decline this quarter from Q2's level, after a 5% quarter-over-quarter decline last quarter.

http://blogs.barrons.com/techtraderdaily/2012/04/2...


RE: Magical Numbers
By Tony Swash on 4/24/12, Rating: -1
RE: Magical Numbers
By corduroygt on 4/24/2012 7:50:08 PM , Rating: 2
Yea, the iPad 3 (not gonna call it the new ipad, that's stupid) isn't even released in china yet.


RE: Magical Numbers
By Mitch101 on 4/24/2012 8:30:29 PM , Rating: 2
Tony Swash of DT or Barrons
I think Ill take the advice of Barrons over Tony Swash.


RE: Magical Numbers
By Tony Swash on 4/25/2012 9:10:48 AM , Rating: 1
quote:
Tony Swash of DT or Barrons
I think Ill take the advice of Barrons over Tony Swash.


You don't have to take my word for it :)

Topeka's Brian White:  #1 in Consumers' Hearts, Apple Fever Rocks On. "Last night, Apple's performance once again demonstrated how quickly Apple fever is spreading around the world and this trend continues to drive meaningful upside in the Company's financial results. We believe the negative vibes that have held back the stock over the past couple of weeks will now be replaced with the fear of missing the next leg up." Raises price target to $1,111.  

Goldman Sachs' Bill Shope:  Surprising upside likely to reignite the rally. "The sharp upside in iPhones and a favorable commodity cost environment also allowed gross margins to come in at a record 47.4%, versus our estimate of 43.5%. Operating margins of 39.3% also represented a new record for the company... Out of all the good news in the quarter, we believe Apple's margin upside has the most important long-term implications for the story. While these margins should come down in quarters where iPhone mix is less substantial, the results suggest that annual margins can sustainably be much higher than investors previously appreciated. This substantially increases long-term earnings and cash flow generation potential. Raising price target to $850.

ISI's Brian Marshall: Let the Asymmetric Alpha Generation Resume. "2 Perfect Quarters in a Row? When AAPL beat its revenue guidance by ~25% and EPS guidance by ~50% last quarter, we called it the "perfect" quarter. AAPL managed to again deliver huge upside in the Mar-12 quarter." Raising price target to $750.

J.P. Morgan's Mark Moskowitz:  Those Are Really Big Numbers; Customer Affinity for Apple Devices Intensifies. "Apple continues to defy the law of large numbers with ongoing momentum across all of its major product lines. After setting all-time revenue and EPS records in the seasonally strong Dec-Q, Apple followed that up with its second best quarter ever and records for a Mar-Q. The company's results are a testament to Apple's optimization of the end user experience, in our view." Price target: $715.

Canaacord Genuity's T. Michael Walkley:  Strong Quarter. "Apple generated an astonishing $14B in cash from operations during the quarter and ended the March quarter with $110.2B in cash and cash equivalents, representing a remarkable $117 in cash per share. Based on the closing price of $560 per share, Apple is trading at roughly 8x our updated F2013 estimate after backing out the $117 in cash per share. With Apple returning cash to shareholders through its dividend and buyback programs starting later this year, we believe Apple remains a compelling investment." Raising price target to $775.

Morningstar's Michael Holt:  Surging iPhone Sales Propel Apple to Another Stellar Quarter. "The clear standout metric, however, was Apple's gross margin of 47.4%, up 600 basis points year over year and 270 basis points sequentially. The ability to expand the gross margin and deliver massive unit shipment growth signals that Apple is having no trouble moving premium-priced units." Fair value estimate: $670 per share.

Citi's Richard Gardner: Yet Another iPhone Blow-Out. "While we continue to see potential for a merely in-line quarter at some point this year ahead of the iPhone 5 transition, valuation is not demanding and we would be aggressive buyers on any potential weakness." Raising price target to $720.


RE: Magical Numbers
By StevoLincolnite on 4/25/2012 6:26:44 AM , Rating: 2
quote:
Apple grows by 80% year on year - again - and yet is still doomed.

iPhone sales grew in China by 500%


Percentages, Percentages, Percentages.

Yesterday I sold 1 glass of lemonade, today I sold 10 glasses of lemonade.
That's an increase of 1000% so obviously I have outsold the iPhone.


RE: Magical Numbers
By Tony Swash on 4/25/12, Rating: -1
RE: Magical Numbers
By MaulBall789 on 4/25/2012 11:33:52 AM , Rating: 2
quote:
I sold 1 glass of lemonade, today I sold 10 glasses of lemonade. That's an increase of 1000% so obviously I have outsold the iPhone.


That would technically be a 100% increase, but let's not split hairs. The only real numbers that make any difference here is Apple made $11.6 BILLION in pure profit. Unless your increase in lemonade sales can claim that, no one could care less about your percentage. Only that Apple's market share is still clearly growing.


RE: Magical Numbers
By WW102 on 4/25/2012 1:22:10 PM , Rating: 2
quote:
I sold 1 glass of lemonade, today I sold 10 glasses of lemonade. That's an increase of 1000% so obviously I have outsold the iPhone.


quote:
That would technically be a 100% increase, but let's not split hairs.


Where did you go to school again?


RE: Magical Numbers
By MaulBall789 on 5/14/2013 9:14:11 AM , Rating: 2
Apparently I was under the influence of the magical numbers tag. Clearly that was not my best math day.


RE: Magical Numbers
By aliasfox on 4/25/2012 4:21:28 PM , Rating: 2
Aassuming 30 million unit per quarter run rate, 8.6 million units in stock equates to about 3-4 weeks of supply in the system - which is exactly what they expect to have. If they're expecting lower sales this quarter, it could be six weeks' supply.

If you're over eight weeks' supply in most industries, you're doing it wrong and holding too much stock.

If you're under two weeks' supply, you're likely running into shortages of products at retail as some stores or warehouses won't have stock, while others are holding three or four weeks' worth (and not wanting to give up their supply).

I'd say they're right where they're supposed to be in terms of product - if there's one thing you can trust Tim Cook to do, it's managing supply chains.


"And boy have we patented it!" -- Steve Jobs, Macworld 2007














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