Apple smashes Street, posts revenue of $7.1 billion and record net quarterly profit of $1 billion

Apple today announced financial results for its fiscal 2007 first quarter ended December 30, 2006. The Company posted record revenue of $7.1 billion and record net quarterly profit of $1.0 billion, or $1.14 per diluted share. These results compare to revenue of $5.7 billion and net quarterly profit of $565 million, or $.65 per diluted share, in the year-ago quarter. Gross margin was 31.2 percent, up from 27.2 percent in the year-ago quarter. International sales accounted for 42 percent of the quarter’s revenue.

Apple shipped 1,606,000 Macintosh computers and 21,066,000 iPods during the quarter, representing 28 percent growth in Macs and 50 percent growth in iPods over the year-ago quarter.

“We are incredibly pleased to report record quarterly revenue of over $7 billion and record earnings of $1 billion,” said Steve Jobs, Apple’s CEO, in the press release. “We’ve just kicked off what is going to be a very strong new product year for Apple by launching Apple TV and the revolutionary iPhone.”

“We generated over $1.75 billion in cash during the quarter to end with $11.9 billion,” said Peter Oppenheimer, Apple’s CFO, in the press release. “Looking ahead to the second fiscal quarter of 2007, we expect revenue of $4.8 to $4.9 billion and earnings per diluted share of $.54 to $.56.”

Apple will provide live streaming of its Q1 2007 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. PST on Wednesday, January 17, 2007 at http://www.apple.com/quicktime/qtv/earningsq107/ and will also be available for replay.

MacDailyNews Note: Ahead of the earnings release, Thomson First Call analysts had expected Apple to make 78 cents a share on sales of $6.42 billion for the first quarter.

62 Comments

  1. FYI, the reason there is no after-hours activity on this news as AAPL trading has been halted pending the Q1 financial results conference. Expect the price to surge before markets re-open. IOW, only the big guys will get in on today’s bargain-basement dip.

    Unless Steve resigns or something equally traumatic comes up during the conference. (And no I am not perpetrating this rumor.)

  2. I am disappointed in the Mac sales as well. I would rather have seen less iPod sales and greater Mac sales. This represents ever slightly less sales than last quarter’s 1.610 million.

    It’s surprising that the gross margins are up therefore. IPods have lower margins than the computers.

    I’m wondering if software sales have shot up.

  3. Estimate for Q2 is quite low, below 5 Billions …

    Jeff,

    Q2 is traditionally the slowest quarter. Look for a big surge in Q3 when the desktop publishing/multimedia community upgrades their hardware to go with the new Adobe application suites – along with the traditional graduation purchases, etc…

  4. Not only is this great in the aggregate, but the Mac growth number may be great individually if the overall PC market growth is low (which is what I’ve heard). If overall PC market grow is 12-16%, this is just OK (i.e., advantage already baked in), but if overall market growth is only 6-8%, this is spectacular! I believe overall growth is in single digits…

  5. And no doubt we will see the usual suspects writing a flurrly of articles proclaiming how Steve Jobs deceived shareholders and cost them money as a result of the options backdating mistake. Whining about an $84 million dollar expense (which will not happen again) when shareholders have literally been raking in billions overnight because of Apple consistently producing results like this.

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