Apple reports second quarter results; most profitable Q2 quarter in Apple’s history

Apple today announced financial results for its fiscal 2007 second quarter ended March 31, 2007. The Company posted revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share. These results compare to revenue of $4.36 billion and net quarterly profit of $410 million, or $.47 per diluted share, in the year-ago quarter. Gross margin was 35.1 percent, up from 29.8 percent in the year-ago quarter. International sales accounted for 43 percent of the quarter’s revenue.

Apple shipped 1,517,000 Macintosh computers and 10,549,000 iPods during the quarter, representing 36 percent growth in Macs and 24 percent growth in iPods over the year-ago quarter.

“The Mac is clearly gaining market share, with sales growing 36 percent—more than three times the industry growth rate,” said Steve Jobs, Apple’s CEO. “We’re very excited about the upcoming launch of iPhone in late June, and are also hard at work on some other amazing new products in our pipeline.”

“We are very pleased to report the most profitable March quarter in Apple’s history,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third fiscal quarter of 2007, we expect revenue of about $5.1 billion and earnings per diluted share of about $.66.”

Apple will provide live streaming of its Q2 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. PDT on Wednesday, April 25, 2007 at http://www.apple.com/quicktime/qtv/earningsq207/ and will also be available for replay.

50 Comments

  1. You know, this is enough to piss off the pope. Here I am sittin on 10 grand that’s earmarked for the stock market, so I’ve waited a few weeks to buy when Apple announced their quartely results. See, for the past several quarters Apple has dipped quite a bit every time they announce record earnings/sales/etc so I figured this will be no different. But oh no… now that I’m ready to do something it runs the opposite way. Figures. Think I should buy Ford, or Dell? j/k

  2. no new products and they crush estimates – i have ridden tthis stick the low 17s and made a killing – when it touched i started buying a lot and i mean alot and did really well.
    For the first time since then i feel again that it will touch 200 bt xmas – trust me. thought this quarter would be bad but with ipobe, new os, ne ipods, back-to-school, xmas, itune innovation, new software addition to apple tv and do not forget the splits – yes splits do help.

    how “much” do you think it will touch??

  3. You forgot to mention that leopard isn’t do for another 3 months to but the Apple TV is selling quite well and with Macs outselling everything else it just proves that Apple still is a computer company.

  4. @No Squirt,

    I started buying around the same time too. Added more since. Today’s after jump adds 10% to the stock. I’d love to hear them say “stock split” during the conference call.

    The board of directors also came out and stated that they fully backed Steve.

    Magic word: strong as in this stock is STRONG

  5. Very hefty sales and profitablity increase with no new Macs, ipods, or iPhone, congrats Apple. Suddenly a 10% market share for Macs doesn’t sound like wishful thinking.

    On a lighter note, I bet its raining chairs in the northwest this afternoon.

  6. Apple tv – very good start – however no shipment numbers
    No issue in hiring alluding to leopard delay. ipone very compelling/complex product hence the delay
    guiding gross margin down ( from 32% to 27) – due to higher education demand next quarter which has lower margin and alos commodity environment was too good and will not continue

  7. “Here I am sittin on 10 grand that’s earmarked for the stock market, so I’ve waited a few weeks to buy when Apple announced their quartely results”

    That’s why trying to time the market is not a good strategy.

  8. I got on the call. It’s always been my hope, but now I think it’s truly becoming a reality– this is just the beginning of Apple’s growth. M$ is going to fill its tighty-whiteys if they ever really understand how up Sh*t Creek they are.

    MDN “finally,” as in “NO kidding!”

  9. “You forgot to mention that leopard isn’t do for another 3 months to but the Apple TV is selling quite well and with Macs outselling everything else it just proves that Apple still is a computer company.”

    My library book is overdo and we are do for some warmer weather.

  10. Note that Apple is once again low balling their guidance for the next quarter. The hedge fund FUDmeisters will likely spin this one to get the price down. Also, volumes are way too low after hours, so do not yet conclude that we will rocket to the moon quite yet.

    But at some point we will take off and clean up in AAPL, regardless of the FUDsters. It could be now, but it will surely come by the Q4 quarterly report with iPhone numbers baked in.

  11. For the faithful, this news was expected. Now I am wondering what other possible motivation more 3rd party developers need to start developing for the Mac as well. Game developers especially. People, pay attention…this is just the start. Apple needs to get behind this growth with dev tools that appeal to more of the masses. Xcode supporting C++ for Windows comes to mind….

  12. “See, for the past several quarters Apple has dipped quite a bit every time they announce record earnings/sales/etc”

    No it didn’t. It used to be that way but the last couple years it’s been erratic. Sometimes up, sometimes down. The reason you think that is because that’s what people keep saying on Mac forums, but its not true.

    I know. I am in investor in AAPL and I kept expecting the same thing, but it hasnt held as true lately as it has in the past. Next time it dips a couple bucks, do yourself a favor and just buy it instead of trying to time the market.

  13. macromancer –

    The deal with AAPL after product announcements seems to be tied into the guidance for the next quarter – I’m also an investor in AAPL (200 shares at a post-split price of $9) and at lot of the post-announcement moves seem based on the CFO next quarter guidance compared to what “the market expects”. I was shocked at the post-announcement run up today as I was reading on other sites today what the guidance was expected to be and the CFO came in slightly lower. Hopefully the huge profits helped ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    MDN Magic Word “states” – Geo states that he’s happy with AAPL at $100 ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  14. “International sales accounted for 43 percent of the quarter’s revenue.”

    Yep, Apple EMEA has been growing like nothing could stop it.

    MDN with “faith” kinda blew it. It is all due to tremendously good work.

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