Apple’s Mac powers Apple above and beyond Wall Street’s expectations

“Apple blew past Wall Street’s expectations with a fiscal fourth-quarter report on Oct. 19 that showed profits surged 47% and revenues climbed 25% on lofty Mac computer sales,” Arik Hesseldahl reports for BusinessWeek.

“Apple rode strong consumer sales of its Mac PCs and iPhones during the quarter,” Hesseldahl reports.

MacDailyNews Take: “Mac PCs.” Cringe. That’s sounds almost as jarring as “Microsoft Works.”

Hesseldahl continues, “Sales shot up to nearly $9.9 billion, vs. $7.9 billion a year ago. Net income reached $1.67 billion, or $1.82 per share, compared to $1.26 a year ago. Gross margin, a key measure of profitability, was 36.3%.”

MacDailyNews Take: Upon hearing Apple’s gross margin figure, Michael Dell promptly fainted. When we woke up, he vowed to “make it all up in volume.” Not too bright, that Mikey.

Hesseldahl continues, “The results bested the estimates of even the most bullish analysts. Wall Street’s consensus estimate was that Apple would report sales of $9.2 billion and earn $1.42 per share. ‘My estimates were higher than the Street’s, people told me I was too high, and they still beat both my numbers,’ says Brian Marshall, an analyst with Broadpoint AmTech.”

“Shares of Apple soared in extended trading, adding 6.3% after closing Oct. 19 at 189.86, a gain of 1.81, or nearly 1%,” Hesseldahl reports. “At one point in extended trading, the shares reached nearly 205. Apple’s all-time intraday high price during a regular trading session is 202.96, set on Dec. 27, 2007, and it has been trading near its 52-week high of 190 in recent days.”

Full article here.

15 Comments

  1. I am soooooooooooooo gggggggggllllllllllllllaaaaaaaaaaadddddddddd that I kept my apple stocks. Not much. Just 50 shares. Bought back after the split in 2005 when it was around $40/share. Wished I had bought more.

  2. Woot! Love it! And since mac computer sales were the big number, it shows that this is more than just an ipod/iphone bubble effect. 3 record quarters are not an effect, they are a trend.

  3. And if you replace last week’s estimate of 1.6 million Macs in the last quarter with 3 million, you get somewhere near 16% market share in the US, not 9.4%. (IDC market share estimate of last week.)

  4. The WSJ had a similar article, same numbers and all, yet they managed to credit the growth to the iPhone. I nearly choked! They clearly said the iPhone sales grew 7% (impressive enough) and the Mac sales grew 17% – both year over year – and then attributed the over-all growth to the iPhone. Never mind that the profits from one Mac could buy a couple of iPhones outright!
    Wingsy, nice point. Yes, the IDC numbers may have to be adjusted. With maybe 40% growth in several foreign markets, Apple may even be about to hit the Top 5 in the WORLD.

  5. I dunno, but PC to me means something “other” than the Macintosh experience. The Mac experience is not a PC (Personal Computer), it’s something different – think different if you will, but different.

    What these analysts need to do is some old fashioned research, which means leaving their cushy offices and visiting an Apple store for a few days. Sit in the parking lot like you were on a stake out and count the number of folks going in and out. Sit in the corner and count the number of folks interacting with the products. Purchasing the products. Etc. Let some of the experience rub off on you.

    I have yet to visit an Apple store that has not been crowded with eager people looking to spend money. None of the earnings reports have surprised me. More and more people I know are getting Mac’s and iPhones and loving them like new family members. That doesn’t happen with PC’s – sorry.

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