Apple shares rocket over 12% in pre-market trading on strong earnings report

Apple shares rocketed over 12%, up $7.00, to $61.10 in pre-market trading after the Cupertino Mac- and iPod-maker reported fiscal third-quarter earnings that rose 48% and topped Wall Street expectations, helped by a better-than-anticipated gross margin performance.

Apple reported the second highest quarterly sales and earnings in the company’s history.

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.

Looking ahead to Q4 06, Apple expects revenue of between $4.5 to $4.6 billion.

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
Apple reports third quarter results: $0.54 per share on $4.37 billion in revenue – July 19, 2006

22 Comments

  1. Can any of you analysts comment, regarding the doom & gloom news they were all predicting………………………..

    or were you talking about the next 1/4 thats all doom & gloom…………

    I guess you can’t be right every time, but it’s peoples money you’re dealing with & a lot of people probaly sold their stock at a loss with what you said about AAPL

  2. Apple did not “miss” on the revenues, they were inline with expectations.

    They really delivered on profits, however, which exceeded the consensus estimate.

    But what is really driving the stock up is the fact that Mac sales were so strong in what should have been a weak quarter. Even iPod sales were healthy despite all the moaning about the lack of new models.

    Next quarter, Apple will have completed the Intel transition. There will be new pro desktops, new pro notebooks, probably refreshed iMacs and MacBooks. There will be new iPods, with a good possibility of other new devices and services. The past quarter was basically proof that sales will go through the roof with all the pieces in place because people are already buying the pieces that Apple does have in place (60% increase in Mac notebooks sales!)

    The market is clearly salivating at the prospect and that’s what’s driving the stock up.

  3. You see it’s all about money.

    We have it and most of you don’t for a reason.

    It’s quite easy, really. We talk down stock for a company that’s poised to reap massive profits, like AAPL, in order to lower the price for our clients and ourselves. Then we buy large quantities.

    Enough suckers believe us that it actually works. Come to Manhattan and listen to us joke and laugh about it at certain exclusive drinking establishments.

    Anyway, after the health of the company becomes plainly evident via earnings reports, we make a killing by selling the stock and than get “concerned” again about whatever we feel like making up – falling iPod sales, Microsoft iPod “killer” (that’s ones really good for a laugh), or whatever.

    So, we talk down stock for a company that’s poised to reap massive profits, like AAPL, in order to lower the price for our clients and ourselves. Then we buy large quantities.

    Enough suckers believe us that it actually works. Come to Manhattan and listen to us joke and laugh about it at certain exclusive drinking establishments.

    Anyway, after the health of the company becomes plainly evident via earnings reports, we make a killing by selling the stock and than get “concerned” again about whatever we feel like making up – falling iPod sales, Microsoft iPod “killer” (that’s ones really good for a laugh), or whatever.

    So, we talk down stock for a company that’s poised to reap massive profits, like AAPL, in order to lower the price for our clients and ourselves. Then we buy large quantities.

    Enough suckers believe us that it actually works. Come to Manhattan and listen to us joke and laugh about it at certain exclusive drinking establishments.

    Anyway, after the health of the company becomes plainly evident via earnings reports, we make a killing by selling the stock and than get “concerned” again about whatever we feel like making up – falling iPod sales, Microsoft iPod “killer” (that’s ones really good for a laugh), or whatever.

    Ad infinitum.

    You see it’s all about money.

    We have it and most of you don’t for a reason.

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