Apple destroys Street with all-time record revenue and earnings

Apple today announced financial results for its fiscal 2011 third quarter ended June 25, 2011. The Company posted record quarterly revenue of $28.57 billion and record quarterly net profit of $7.31 billion, or $7.79 per diluted share.

These results compare to revenue of $15.70 billion and net quarterly profit of $3.25 billion, or $3.51 per diluted share, in the year-ago quarter.

Gross margin was 41.7 percent compared to 39.1 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

MacDailyNews Note: The analysts’ consensus estimates called for $5.84 EPS on revenue of $25.00 billion (vs. Q310 results of $3.51 EPS on revenue of $15.70 billion). On April 20, 2011, Apple CFO Peter Oppenheimer provided the following guidance: “Looking ahead to the third fiscal quarter of 2011, we expect revenue of about $23 billion and we expect diluted earnings per share of about $5.03.”

Apple sold 20.34 million iPhones in the quarter, representing 142 percent unit growth over the year-ago quarter. Apple sold 9.25 million iPads during the quarter, a 183 percent unit increase over the year-ago quarter. The Company sold 3.95 million Macs during the quarter, a 14 percent unit increase over the year-ago quarter. Apple sold 7.54 million iPods, a 20 percent unit decline from the year-ago quarter.

“We’re thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent,” said Steve Jobs, Apple’s CEO, in the press release. “Right now, we’re very focused and excited about bringing iOS 5 and iCloud to our users this fall.”

“We are extremely pleased with our performance which drove quarterly cash flow from operations of $11.1 billion, an increase of 131 percent year-over-year,” said Peter Oppenheimer, Apple’s CFO, in the press releease. “Looking ahead to the fourth fiscal quarter of 2011, we expect revenue of about $25 billion and we expect diluted earnings per share of about $5.50.”

MacDailyNews Take: Boom!

MacDailyNews Note: Apple shares (AAPL) to resume trading at 4:50pm EDT.

45 Comments

  1. Well smack my thigh and tickle my ribs.

    Good job Apple.

    ———————————

    Good design is innovative
    Good design makes a product useful
    Good design is aesthetic
    Good design makes a product understandable
    Good design is unobtrusive
    Good design is honest
    Good design is long-lasting
    Good design is thorough down to the last detail
    Good design is environmentally friendly
    Good design is as little design as possible

    Dieter Rams

    The profits we are seeing today are most definitely a result of the above.

  2. KenC is right.

    Apple has larger revenues, larger net profits, larger marketcap, larger revenue and net profit growth rates than Microsoft.

    Apple is now $100 billion bigger than Msft in marketcap. Apple has so much CASH saved up it can buy Dell twice over.

  3. I don’t believe for a moment that the CFO really expects revenue of $25 billion next quarter, any more than I believe that he really expected revenue of $23 billion this quarter. He shouldn’t be allowed to get away with making misleading statements to investors just because they are on the underside. If he has this sort of casual attitude to the truth when times are good, how would he act when under financial pressure?

    1. Under promise (worst case scenario) and over deliver. As a long time stock holder, I’ve been happy with this style for the last 11 years or so. Under financial pressure, I’d expect him to lowball still.

  4. @Phillip,
    When a certain SAn Diego based law firm quits initiating shareholder class action lawsuits when Apple doesn’t make all it’s numbers, than and only then will Apple be able to give other than lowball estimates.

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