Apple smashes Street with revenue of $45.65 billion in Q214

Apple today announced financial results for its fiscal 2014 second quarter ended March 29, 2014. The Company posted quarterly revenue of $45.6 billion and quarterly net profit of $10.2 billion, or $11.62 per diluted share. These results compare to revenue of $43.6 billion and net profit of $9.5 billion, or $10.09 per diluted share, in the year-ago quarter. Gross margin was 39.3% compared to 37.5% in the year-ago quarter. International sales accounted for 66% of the quarter’s revenue.

“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO, in a staement. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”

“We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” said Peter Oppenheimer, Apple’s CFO, in a statement. “That brings cumulative payments under our capital return program to $66 billion.”

• iPhone: 43.719 million units, $26.064 billion revenue
• iPad: 16.350 million units, $7.610 billion revenue
• Mac: 4.136 million units, $5.519 billion revenue
• iPod: $2.761 million units, $461 million revenue
• iTunes/Software/Services: $4.573 billion revenue

Apple is providing the following guidance for its fiscal 2014 third quarter:
• revenue between $36 billion and $38 billion
• gross margin between 37 percent and 38 percent
• operating expenses between $4.4 billion and $4.5 billion
• other income/(expense) of $200 million
• tax rate of 26.1 percent

Wall Street analysts were expecting:

• Thomson Reuters: $10.18 a share on $43.53 billion in revenue
• FactSet: $10.19 a share on $43.7 billion revenue
• Bloomberg:
– Revenue: $43.6 billion
– EPS: $10.16
– Gross margin: 37.7%
– iPhone unit sales: 37.7 million units
– iPhone average selling price (ASP): $610
– iPad unit sales: 19.7 million units
– iPad ASP: $430
– Mac unit sales: 4.03 million units
– iPod unit sales: 2.99 million units
– Apple’s Q314 revenue guidance: $38.1 billion

MacDailyNews Take: Boom!

Related article:
Apple announces 7-for-1 stock split; boosts dividend, ups buybacks to $90 billion
– April 23, 2014

57 Comments

  1. $ 2 Billion here, $ 2 Billion there. Sooner or later it adds up. Now the anal-cysts can whine YKBAID because 12 new product categories weren’t introduced in the first quarter.

    1. In next quarter (current one) Apple might show two-digit YoY growth, which it did not for some time already. I predict up to 37 million iPhones sold, significant increase over 31 million sold in last year’s June quarter.

  2. Halleluiah signs of relieves I hold my breaths all day. Now Apple shareholders are paid off for being patience. Congratulations to all of Apple shareholders and Apple teams and CEO Tim Cook as well.

      1. then you will be pleased to read:

        “Key Observations:
        …according to the latest Nielsen data, in July the financial network’s prime (25-54 demographic) viewership just tumbled to a fresh 20 year low of just 37,000, the lowest since March of 1993.
        Total viewership fared a little bit better: it too plunged last month dropping to just 128,000, but that was the lowest in “only” just under a decade, or since September 2004.
        Individual CNBC Shows “all had all time low ratings in the “all viewers” category in August 2013.”
        CNBC’s Fast Money (-32% Y/Y)
        Mad Money (-42% Y/Y)
        Kudlow (-52% Y/Y)”

        1. I was watching NBR on PBS tonight. (CNBC’s Nightly Business Report on the Public Broadcasting System in the USA). It got very silly regarding Apple thanks to an analyst named Max Wolff of Greencrest Capital and Citizen VC.

          Masochism Opportunity Ahead. The Apple report is at the start of the program:
          http://nbr.com/2014/04/23/nightly-business-report-april-23-2014/

          Max’s key phrase was “Wizz Bang Products“, like that’s the point of Apple’s existence. He also talked about Apple gear as a ‘status symbol‘, as if ‘status’ is the point of buying Apple devices. He called the iPhone ‘basically miniature’ and is pushing for ‘full sized phones’ as if they’re some great idea for making Apple money. Blahblahblah. He made a few obvious points of upcoming Apple tech as well.

          This is the crap average people see and hear about Apple these days. Delusional. (o_0)

          BONUS:
          The report also chatted up Carl Icahn’s barf session after Apple’s announcements, as if Carl had anything to do with Apple’s success, stock split, buy back, increased dividend…. The guy is such an incredibly needy attention whore. Money talks, but there’s nothing guaranteeing money has anything worth saying. (0_o)

        2. I watch this show from time to time because I like PBS (it’s actually the only TV channel I watch), but I am usually upset by the talking heads that they bring on to discuss Apple. Not to mention the fact that Susie Gharab (sp?) is an airhead.

  3. Stocks skydive down and into the dumps! LOL

    ANALyst gets a raise for being wrong and lifetime bonus awards.

    iHaters crawl back under the stinking slimy rock and fester about not being hateful and anti-American enough.

    Paid bloggers/iHaters get a pay cut for doing a lousy job at sabotaging Apple

    DOJ will now focus all out efforts to screw Apple and make them pay pay pay pay no matter how wrong the DOJ are at targeting Apple instead of the real evil ones.

  4. Uh oh. Guidance for revenue for Q314 was lower than what Bloomie forecast and iPad sales were a little under their forecast, although everything else was higher. That won’t matter – expect the stock to tank cause they missed SOMETHING.

  5. It just goes to show that nobody really knows what’s going on at Apple. Anything predicted from the “pros” is just BS or their looking for hits on a slow week. They should just stop trying to predict what Apple is about.

  6. Nice quarter. No, make that a REALLY nice quarter.

    That said, the analysts and pundits will find something to criticize. But for a long-term investor, this point in time shows the Apple is still humming along, cash flow and earnings are growing, all in a non-holiday quarter, and a quarter that is not the time of year in which the company introduces new products.

    And I’ll be curious to hear why Apple decided to proceed with the stock split. It does not make you wealthier – you simply have more shares to stock.

    Well done, Apple. Maybe now the Tim Cook haters will STFU for a while. We can only hope.

        1. Oh, I wholeheartedly agree: its an upsell from a $100 device to a $500 one. Main reason for my comment was to sarcastically point it out before the loser trolls try to do so.

          -hh

  7. These fsckers just never quit the doom and gloom. UN REAL.

    Apple Reports A Big Miss On iPad Sales

    Business Insider

    By Steve Kovach2 minutes ago
    AP

    Apple announced today its iPhone and iPad sales for the first quarter of 2014.

    Here’s the score:

    iPhones: 43.7 million units vs. 37.7 million units expected by analysts

    iPads: 16.35 million units vs. 19.7 million units expected by analysts.

    That’s a huge miss on iPad sales, and just another demonstration of how growth in Apple’s tablet business has stalled.

    1. No doubt, Kovich is acting on the directive of Apple hater and banished, disgraced former analyst Henry Blodgett, he of cloven hooves.

      As they say, “Haters gonna hate.” But I take solace from this set of lyrics:

      “Have you noticed that an angry man,
      Can only get so far,
      Until he reconciles the way he thinks things ought to be,
      With the way things are.”
      – Don Henley, Songwriter (“My Thanksgiving”)

  8. I can see the headlines now! “Apple stock plummets to $80 per share in bloodbath following split!” They’ll ignore that the fact that the split one share which was worth only around $530 is now SEVEN SHARES trading at around $80 Or so EACH with a combined net value of $560. . . because more small investors can demand to buy shares and drive the price up!

  9. No matter what the always wrong analysts say, this is what we call a great quarter. They will, of course, harp on the lower number of iPads sold compared to the year ago quarter, and try to make it seem like a total disaster. When I used to work for Apple many years ago, 4.1 million Macs was what we sold throughout the whole year. Now Apple sells this many in a single quarter.

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