Apple today announced financial results for its fiscal 2008 fourth quarter ended September 27, 2008. The Company posted revenue of $7.9 billion and net quarterly profit of $1.14 billion, or $1.26 per diluted share. These results compare to revenue of $6.22 billion and net quarterly profit of $904 million, or $1.01 per diluted share, in the year-ago quarter. Gross margin was 34.7 percent, up from 33.6 percent in the year-ago quarter. International sales accounted for 41 percent of the quarter’s revenue.
MacDailyNews Note: Analysts’ consensus estimates for Apple’s Q4 08 called for $1.11 EPS, on revenue of $8.05 billion, or 29.4% YOY sales growth. Peter Oppenheimer, Apple’s CFO, had provided guidance of “about $7.8 billion” and earnings per diluted share of “about $1.00.”
In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone and Apple TV over their economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures (more info) for the quarter are $11.68 billion of “Adjusted Sales” and $2.44 billion of “Adjusted Net Income.”
Apple shipped 2,611,000 Macintosh computers during the quarter, representing 21% unit growth and 17% revenue growth over the year-ago quarter. The company sold 11,052,000 iPods during the quarter, representing 8% unit growth and 3% revenue growth over the year-ago quarter. Quarterly iPhone units sold were 6,892,000 compared to 1,119,000 in the year-ago-quarter.
“Apple just reported one of the best quarters in its history, with a spectacular performance by the iPhone—we sold more phones than RIM,” said Steve Jobs, Apple’s CEO, in the press release. “We don’t yet know how this economic downturn will affect Apple. But we’re armed with the strongest product line in our history, the most talented employees and the best customers in our industry. And $25 billion of cash safely in the bank with zero debt.”
“We’re very pleased to have grown revenue 35 percent and to have generated $9.1 billion in cash in fiscal 2008,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead, visibility is low and forecasting is challenging, and as a result we are going to be prudent in predicting the December quarter. We are providing a wide range for our guidance, targeting revenue of $9.0 to $10.0 billion and earnings per diluted share between $1.06 and $1.35.”
MacDailyNews Take: Analysts’ consensus estimates for Q1 09 call for $1.65 EPS, on revenue of $10.57 billion, or 10.0% YOY sales growth. It’s nice to see Apple providing a “wide range” instead of harder guidance, but even the top end of EPS guidance doesn’t come close to expectations. We’ll see how the market treats this guidance. If history is any guide, it won’t be pretty.
Apple will conduct a conference call to discuss the company’s results today, Tuesday, October 21, 2008 at 2pm PT/5pm ET.
MacDailyNews will be covering the conference call via live notes at that time. The live coverage will appear at the top of our home pages shortly before 5pm ET.
The link to the QuickTime stream of the conference call is here.
I don’t love George, but 7 of 8 Bush years were prosperous…easy to forget.
Noone has ever had a more difficult, tough decision-making presidency, ever! History won’t forget.
Back to topic…Apple has hung the moon even higher yet again, raising expectations and standards that even they can barely meet.
Surely, Buffet can float GE, etc, but is completely blind to the numbers Apple has posted ever so consistently. Tech simply is not ever going away, and Apple is so far ahead.
Interesting to hear Jobs talk of possible merge “opportunities”. Who could they swallow to directly and immediately help them grow even further? Any ideas?
@CD
If driving the country into deep debt that will take many years (decades) to pay back is prosperity, you can have it.
Big Evil Corporate Apple has definitely landed a windfall profit.
Time for Uncle Sam to take it all.
Remember, the fire department will close if we don’t tax the rich.
“poo” writes:
“If driving the country into deep debt that will take many years (decades) to pay back is prosperity, you can have it.”
That practice has been going on since well before FDR. When revenues go up (thanks to tax cuts), politicians just spend more to buy votes. You shouldn’t blame Bush for the acts of Congressional politicians.
In his short career in the US Senate, Obama has sent nearly $1 billion back to his district in “earmarks” … in his long Senate career, McCain has sent back zero earmarks.
I’m glad Apple is solvent and well run. Too bad the US Government doesn’t have as good a management operation. But then, who is going to vote for someone who stands for fiscal responsibility when so many people want their “goodies” (free college, free health care, etc., ad nauseam).
Apple will do well if the economy is strong. Higher taxes will destroy the precarious economy (it’s a financial mess, not an economic one, BTW).
The election choices are dramatically different. Those who think not simply are not paying attention.
Sadly, the 9% approval Congress will see incumbents returned at greater than 90% rate.
Let’s hope Apple can survive the government mess this election might bring.
Too bad the US Government doesn’t have as good a management operation.
Sadly, the election process has nothing to do with putting good managers in office.
Good with speeches? Like being on camera? Have a gimmick you can sell? You’re in!
We’ll save the details of actually running things for after the election…
I completely agree. And I suspect that is exactly what’s going to happen eventually. I’m no McPalin supporter, but Obama’s communist/socialist ideas are damn spooky if one takes the longer view of things. Also, I doubt Joe Plumber could afford to attend any of his $28,000 a plate dinners. Whatever, Barack.
All that aside, it’s amazing how Apple keeps rockin’. This was unimaginable ten years ago.
“Of course, the last two times we have tried ‘redistributing the wealth’ any significant way was the 1930s, and again in the 1970s. Result? The Great Depression, and “Stagflation”. Recovering from both of those required cutting tax rates and building the wealth through productivity and entrepreneurship in this country.”
Um, perhaps no one noticed that destratification of our society has really taken off in the last 10 years. Won’t be a middle class much longer, and we’ll be just like Mexico. Congratulations!
Republicans are very good at redistributing wealth…to the upper 10%.
And for all this Steve gets only a $1.00 a year ?
Puts a whole new spin on the “Socialism -v- Capitalism” thing
Think Different™
@VBBob
I don’t remember even mentioning Bush.
I love how you republican a-holes can blame the Dems for every bad thing that happens in your country (not mine thankfully) whether they are in power or not. Just remember though; without the Clinton years, Bush and his puppetmasters wouldn’t have had either the money or worldwide acceptance to saddle you with a trillion (!) dollar debt for an unnecessary war that has only been profitable for the rich buddies of the corrupt government of the past 8 years.
@”Truth”Man,
The difference between Obama and McCain is that all McCain can do is throw mud and stir up hatred, while Obama is taking the higher road.
When all is said and done, McCain is going to be embarrassed by the way he and his supporters have conducted themselves during this campaign. If name-calling is all you can do, then your arguments must be weak.
Now, as for Apple, go team go!
Here is something interesting from Howard Stern about Obama supporters. Maybe there should be an intelligence test for voters.
@opie,
Not gonna waste my time watching any blob with Howard Stern in it.
What do you think about the RNC spending $150,000 in the past six weeks to clothe poor widdle Sarah-warah?
I’d LOVE to dip my toe in this uplifting name-calling farce of a discussion, but I need to practice my smirk for tomorrow when I get to say “told’ja so” to the semi-rich semi-pro investors who asked my opinion yesterday.
About “socialism”, though. I’m not saying Obama IS one or McCain ISN’T one, but it sure came about long before Karl Marxstarted spouting his drivel. There are documented diatribes going back over two thousand years! These have been gathered into one of the most-published books EVER. That would be the Christian Bible, containing the teachings of that great socialist, Jesus Christ. Enjoy.
“while Obama is taking the higher road.”
Obama has purchased more negative advertising than any candidate ever has. What imaginary High Road are you talking about? He’s a politician.
He’ll change his message depending on his audience, He’ll pander to black radicals one year, throw them under the bus the next, talk to crowds in San Francisco one way and heartland America another, be Barry one year then Barack the next, and hope that no-one notices the inconsistencies.
He’ll basically say and do whatever he needs to to get elected. Then he’ll do whatever the heck he intended to do all along.
Anyone who thinks you’re getting a different kind of politician is deluded. What you’re getting is a master chameleon, an actor part of whose stage persona is that he’s a different kind of politician. And he’s sold that character, the Barack you’d like to believe exists, to millions.
Believe what you want to believe.
Wonder how many pairs of ‘throw-me-down-on-the-ground-and-fsck-me’ pumps Widdle Ms. Sarah has now?