Apple reports Q2 2006 earnings: $4.36 billion revenue, $0.47 earnings per share

Apple today announced financial results for its fiscal 2006 second quarter ended April 1, 2006. The Company posted revenue of $4.36 billion and a net quarterly profit of $410 million, or $.47 per diluted share. These results compare to revenue of $3.24 billion and a net profit of $290 million, or $.34 per diluted share, in the year-ago quarter. Gross margin was 29.8 percent, equivalent to the year-ago quarter. International sales accounted for 43 percent of the quarter’s revenue.

Apple shipped 1,112,000 Macintosh computers and 8,526,000 iPods during the quarter, representing 4 percent growth in Macs and 61 percent growth in iPods over the year-ago quarter.

“We’ve generated over $10 billion in revenue and almost $1 billion in earnings in the first half of fiscal 2006,” said Steve Jobs, Apple’s CEO in the press release. “Our transition to Intel processors is going very well, and our music business just experienced another quarter of outstanding growth.”

“We’re very pleased to report the second highest quarterly sales in Apple’s history, resulting in year-over-year revenue growth of 34 percent and earnings growth of 41 percent,” said Peter Oppenheimer, Apple’s CFO in the press release. “Looking ahead to the third quarter of fiscal 2006, we expect revenue of about $4.2 to $4.4 billion. We expect GAAP earnings per diluted share of about $.39 to $.43, including an estimated $.04 per share expense impact from non-cash stock-based compensation, translating to non-GAAP EPS of about $.43 to $.47.”

Apple will provide live streaming of its Q2 2006 financial results conference call utilizing QuickTime, Apple’s standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Wednesday, April 19, 2006 at http://www.apple.com/quicktime/qtv/earningsq206/ and will also be available for replay.

The average estimate of analysts surveyed by Thomson First Call put Apple earnings at $0.43 per share on $4.54 billion in revenue for the latest quarter. In the year ago quarter, Apple earned $0.34 per share on revenue of $3.24 billion.

Advertisements:
Get the new iMac with Intel Core Duo for as low as $31 A MONTH with Free shipping!
Get the MacBook Pro with Intel Core Duo for as low as $47 A MONTH with Free Shipping!
Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
Apple’s brand new iPod Hi-Fi speaker system. Home stereo. Reinvented. Available now for $349 with free shipping.
iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
Connect iPod to your television set with the iPod AV Cable. Just $19.
iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.

Related article:
Piper Jaffray: Apple to report in-line or slightly below Street earnings estimates – April 19, 2006

21 Comments

  1. Pretty good numbers in terms of $$$, but I’m still rather disappointed at the Mac unit numbers. It’s slow growth, and I had hopped for more. On the other hand, the Intel shift changes everything and probably had an impact as people waited to see how it would shake out (plus MacBook Pros were hard to come by). Let’s hope the next quarter is a stunner as far as Mac sales go — otherwise, Apple’s increasing image as the “iPod company” will start to concern me. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    MDN word: want, as in I want a MacBook Pro!

  2. Share price should go up… these are great earnings even with mediocre sales. Imagine how good the next few quarters will look. Price is very low right now, 47 cents was higher than most expected. Up almost 5% after hours already. 😀

  3. Jared White how did you expect more Mac sales when the iMac and MacBook Pro, and maybe some PowerMacs are the only ones selling ? who’s buying iBooks and PowerBooks ? and even Mac minis, which were only just updated so they don’t count .. it’s good that Mac sales were up !

  4. Allow me to help our friend Troy Wolverton give a headline to his upcoming glass half empty article Im sure he will be writing despite Apple beating guidance.

    Some ideas for the headline:
    This Apple is rotten
    Apple rotten to the core
    This Apple stinks
    Apple is crapple
    Bobbing for AAPL
    This Apple is peeled

  5. Grab your profits and get out!!!

    i bought way after the news at $67 but then when i read the news carefully i realized the revenue actually fell short of expectations! so i sold it all at $69

    ( the stock went as high as $69.30 i think )

    see, the whole reason ipod-wifi was introduced was to create some profit, thats how they managed to beat the earnings estimate, with ipod wi-fi profits. ( no wonder it was priced so high ).

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.