Apple reports third quarter results: $0.54 per share on $4.37 billion in revenue

Apple today announced financial results for its fiscal 2006 third quarter ended July 1, 2006. The Company posted revenue of $4.37 billion and a net quarterly profit of $472 million, or $.54 per diluted share. These results compare to revenue of $3.52 billion and a net profit of $320 million, or $.37 per diluted share, in the year-ago quarter. Gross margin was 30.3 percent, up from 29.7 percent in the year-ago quarter. International sales accounted for 39 percent of the quarter’s revenue.

Apple shipped 1,327,000 Macintosh computers and 8,111,000 iPods during the quarter, representing 12 percent growth in Macs and 32 percent growth in iPods over the year-ago quarter.

“We’re thrilled with the growth of our Mac business, and especially that over 75 percent of the Macs sold during the quarter used Intel processors. This is the smoothest and most successful transition that any of us have ever experienced,” said Steve Jobs, Apple’s CEO, in the press release. “In addition, iPod continued to earn a US market share of over 75 percent and we are extremely excited about future iPod products in our pipeline.”

“We’re very pleased to report the second highest quarterly sales and earnings in Apple’s history, resulting in year-over-year revenue growth of 24 percent and earnings growth of 48 percent,” said Peter Oppenheimer, Apple’s CFO, in the press release. “Looking ahead to the fourth quarter of fiscal 2006, we expect revenue of about $4.5 to $4.6 billion. We expect GAAP earnings per diluted share of about $.46 to $.48, including an estimated $.03 per share expense impact from non-cash stock-based compensation, translating to non-GAAP EPS of about $.49 to $.51.”

Analysts surveyed by Thomson First Call estimated that Apple would earn 44 cents a share on $4.4 billion in revenue.

MacDailyNews Take: Good news from Apple. Very strong Mac sales and very strong earnings per share. Conservative guidance as usual.

MacDailyNews Note: Stay tuned for Apple Computer, Inc.’s FY 06 Third Quarter Results Conference Call, scheduled for Wednesday, July 19, 2006, 2:00 p.m. PDT/5:00 p.m. EDT. As usual, MacDailyNews will provide live notes throughout the duration of the conference call here: Apple Q3 2006 Conference Call notes

Apple will provide live audio streaming of its FY 06 Third Quarter Results Conference Call utilizing Apple’s industry-leading QuickTime multimedia software. The live audio webcast will be accessible through Apple’s web site at: http://www.apple.com/quicktime/qtv/earningsq306/

Update: 4:56pm EDT: Apple Computer shares have surged 7.7% to $58.25 in after hours trading on heavy volume.

Related articles:
‘Fantastic quarter’ helps Apple double share of U.S. retail notebook market to 12% – July 19, 2006
Apple Q3 2006 Conference Call notes – July 19, 2006

30 Comments

  1. Two+ years of Apple Numbers

    Quarter – iPods —- Macs — Desktops – Laptops
    Q3 04 – 860000 —— 876000 — 416000 – 460000
    Q4 04 – 2016000 —– 836000 — 385000 – 451000
    Q1 05 – 4580000 —- 1046000 — 623000 – 423000
    Q2 05 – 5311000 —- 1070000 — 608000 – 462000
    Q3 05 – 6155000 —- 1182000 — 687000 – 495000
    Q4 05 – 6451000 —- 1236000 — 602000 – 634000
    Q1 06 – 14043000 — 1254000 — 667000 – 587000
    Q2 06 – 8526000 —- 1112000 – 614000 – 462000
    Q3 06 – 8111000 —- 1327000 – 529000 – 728000

    Hopefully that turned out somewhat legible.

  2. BTW, here’s the guidance given for this last quarter (in April):
    “Apple Computer, Inc. Issues Q3 Guidance; Revenue Outlook Below Analysts’ Estimates
    Apple Computer, Inc. announced that it expects third quarter 2006 revenues of $4.2-$4.4 billion with GAAP earnings of $0.39-$0.43 per share, including an estimated $0.04 per share expense impact from non-cash stock-based compensation, translating to non-GAAP earnings of $0.43-$0.47 per share.”

    Let’s hope this quarter’s guidance is as conservative!

  3. Apple is still a failure. Who on earth has one? Almost nobody uses Macs.

    You can play with the numbers any way you want, but Windows is the winning horse, and Mac is the loser.

    Sorry if the medicine tastes bad, but Apple IS doomed and always has been. It’s dying slowly, but it’s still dying, bleeding cash while the execs cook the books to make things like this SEEM to happen. This year brought the train wreck one step closer. Do you really think there will be any Macs at all in 2008?

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