“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” said Tim Cook, Apple’s CEO, in a statement. “Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline.”
“Our strong business performance drove revenue growth in each of our geographic segments, net income of $11.5 billion, and operating cash flow of $14.5 billion,” said Luca Maestri, Apple’s CFO, in a statement. “We returned almost $25 billion to investors through our capital return program during the quarter, including $20 billion in share repurchases.”
• iPhone: 41.3 million units (+1% YOY), $29.906 billion revenue (+20% YOY)
• iPad: 11.553 million units (+1% YOY), $4.741 billion revenue (-5% YOY)
• Mac: 3.720 million units (-13% YOY), $5.330 billion revenue (-5% YOY)
• Services: $9.548 billion (+31% YOY)
• Other Products: $3.740 billion (+37% YOY)
– Services includes revenue from Digital Content and Services, AppleCare, Apple Pay, licensing and other services. Services revenue in the third quarter of 2018 included a favorable one-time item of $236 million in connection with the final resolution of various lawsuits.
– Other Products includes AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and other Apple-branded and third-party accessories.
Apple is providing the following guidance for its fiscal 2018 fourth quarter:
• revenue between $60 billion and $62 billion
• gross margin between 38 percent and 38.5 percent
• operating expenses between $7.95 billion and $8.05 billion
• other income/(expense) of $300 million
• tax rate of approximately 15 percent before discrete items
Apple’s board of directors has declared a cash dividend of $0.73 per share of the Company’s common stock. The dividend is payable on August 16, 2018 to shareholders of record as of the close of business on August 13, 2018.
Apple will provide live streaming of its Q3 2018 financial results conference call beginning at 2:00 p.m. PDT on July 31, 2018 at www.apple.com/investor/earnings-call/. This webcast will also be available for replay for approximately two weeks thereafter.
Here’s what Wall Street expected:
• EPS: $2.18 (Thomson Reuters consensus estimates)
• Revenue: $52.34 billion (Thomson Reuters consensus estimates)
• iPhone: 42M units for $29.14 billion (FactSet)
• iPad: 10M units for $4.6 billion (FactSet)
• Mac: 4M units for $5.77 billion (FactSet)
• Software & Services: $9.21 billion (FactSet)
• “Other product”: $3.68 billion (FactSet)
MacDailyNews Take: Let the good times roll!