Apple today announced financial results for its fiscal 2013 second quarter ended March 30, 2013.
Apple posted quarterly revenue of $43.6 billion and quarterly net profit of $9.5 billion, or $10.09 per diluted share. These results compare to revenue of $39.2 billion and net profit of $11.6 billion, or $12.30 per diluted share, in the year-ago quarter. Gross margin was 37.5% compared to 47.4% in the year-ago quarter. International sales accounted for 66% of the quarter’s revenue.
Apple sold 37.4 million iPhones in the quarter, compared to 35.1 million in the year-ago quarter. Apple also sold 19.5 million iPads during the quarter, compared to 11.8 million in the year-ago quarter. The Company sold just under 4 million Macs, compared to 4 million in the year-ago quarter.
“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO, in a statement. “Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline.”
“Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Peter Oppenheimer, Apple’s CFO, in a statement.
Apple is providing the following guidance for its fiscal 2013 third quarter:
• revenue between $33.5 billion and $35.5 billion
• gross margin between 36 percent and 37 percent
• operating expenses between $3.85 billion and $3.95 billion
• other income/(expense) of $300 million
• tax rate of 26%
MacDailyNews Note: Apple will provide live streaming of its Q2 2013 financial results conference call beginning at 2pm PDT/5pm EDT on April 23, 2013 at www.apple.com/quicktime/qtv/earningsq213.
MacDailyNews will cover the conference call with live notes, as usual, right here.
Ahead of the earnings report, analysts’ consensus estimates for Apple’s fiscal Q213 chad alled for EPS $9.97 and revenue of $42.4 billion.
In January, Apple had provided the following guidance for its fiscal 2013 second quarter:
• revenue between $41 billion and $43 billion
• gross margin between 37.5 percent and 38.5 percent
• operating expenses between $3.8 billion and $3.9 billion
• other income/(expense) of $350 million
• tax rate of 26%
Ahead of the earnings release, shares of Apple Inc. [AAPL] at 4pm EDT today closed up $7.33, or 1.84%, at $406.00.
MacDailyNews Note: Trading in Apple shares was halted just prior to the earnings report and are expected to resume trading at 4:50 pm EDT.
Apple More than Doubles Capital Return Program
Apple today also announced that its Board of Directors has authorized a significant increase to the Company’s program to return capital to shareholders. The Company expects to utilize a total of $100 billion of cash under the expanded program by the end of calendar 2015. This represents a $55 billion increase to the program announced last year and translates to an average rate of $30 billion per year from the time of the first dividend payment in August 2012 through December 2015.
As part of this program, the Board has increased its share repurchase authorization to $60 billion from the $10 billion level announced last year. This is the largest single share repurchase authorization in history and is expected to be executed by the end of calendar 2015. Apple also expects to utilize about $1 billion annually to net-share-settle vesting restricted stock units.
Additionally, the Board has approved a 15% increase in the Company’s quarterly dividend and today has declared a dividend of $3.05 per common share, payable on May 16, 2013 to shareholders of record as of the close of business on May 13, 2013. Apple is among the largest dividend payers in the world, with annual payments of about $11 billion.
In conjunction with the expanded return of capital program, the Company plans to borrow and expects to announce more details about this in the near future.
The management team and Board of Directors will continue to review each element of the capital return program on an annual basis.
“We are very fortunate to be in a position to more than double the size of the capital return program we announced last year,” said Tim Cook, Apple’s CEO, in a statement. “We believe so strongly that repurchasing our shares represents an attractive use of our capital that we have dedicated the vast majority of the increase in our capital return program to share repurchases.”
“We will continue to return capital to shareholders through dividends, share repurchases, and cash used to net-share-settle vesting RSUs,” said Peter Oppenheimer, Apple’s CFO, in a statement. “We continue to generate cash in excess of our needs to operate the business, invest in our future, and maintain flexibility to take advantage of strategic opportunities.”
MacDailyNews Take: YKBAID.
Of course turkeys!!!
“Apple earnings fall, narrowly beat street views”
Narrowly beat narrow minded street views?
What minds?
Never mind…
Good on the dividend raise. At that rate Apple will have paid me back for my shares by the time I retire.
Good on everything including biggest buyback in history.
And you ain’t seen the pipeline yet.
Don’t care much for dividends – you would hope they will stabilize the stock by encouraging long term holding by funds – and see what happened since Apple introduced it…
But I am really excited by the shares buyback program. Go Apple! Reduce the amount of shares available for manipulation by the crooks. Buy when the bears dump the stock trying to drag the price down when they bet against it with options. Let them lose millions of dollars so they leave Apple alone.
The dividend will carry long investors through this temporarily low level.
1
Not bad after months and tons of FUD…
Boy must be great to be an analyst right now, and be thinking about the headlines on how to spin this into a crap headline! Wall Street – vá se fuder!
It’ll be easy, they will say guidance is weak and margins are shrinking.
Ummm… It’s not all rosy… Yes, revenue grew, but profits fell for the first time in a decade…
So fucking what idiot?
Ok here’s “fucking” what… READ THE ORIGINAL POSTER’s COMMENT.. Then you might be able to figure out the context of my comment… IDIOT.
My apologies, i didn’t look above…
Ouch!
Bet you can’t spell the name of the site that force fed you that stupid piece of “news” –
R E U T E R S. 🙂
This is real easy; Mike, Fuck Off Troll!!
This is even easier (and less letters too!) NO. 🙂
@ MikeK: some people on this site refuse to acknowledge any news that they don’t like. Looks to me that Apple’s iPad mini is severely undercutting margins on not just the iPad, but on MacBooks too. And the bungled iMac release didn’t help either.
Sure hope they elaborate what exactly is in this pipeline — hope to have something more than just a different screen size iDevice.
and some people named mike seem blind to the fact that opinions are like assholes, such that we all have them and sometimes they are clear and lucid, and sometimes they are blocked up and filled with shit. and some people (named mike) for whatever the reason, are unable to see the forest for the trees. break out of it and see the scope, or not; in which case, fuck off and happy trails
Did you have a point, Lee, or are you just pissed that Apple continues to be in coasting mode?
Can you please explain what, besides hitting expected revenue numbers, was good in today’s conference call? Specifics please.
Wow… what a funny bunch, so much anger… But please, don’t shoot the messenger.. I can assure I’m no troll, I’ve been on this site and a pro-Apple fan for years… I was simply replying to the original poster… And yes, it was good that they beat analysts expectations on EPS and total revenue.. But, falling profit for the first time in over a decade is not a good thing.
Compared to the rest of the computer industry (as they flop around like dying fish with hardly one good idea between them and with plummeting sales) it’s still “insanely great”.
That’s it???? TANK IT!!!!
😉
” tax rate of 26%”
Hmmm what did Google pay? 8%
Quite the contrast!
Let’s see what after hours brings us.
Positives – beat expectations / ~10% revenue growth / Good iPad #s / Dividend and Share buyback increase
Negatives – lower margins / lower EPS YOY / <4M Macs
Apple is up about 5% in After Hours trading actually. They like what they see for once.
Ummm. At 3:15 PDT aapl is down 0.6%
SIDAGTMBTTS!!!!!!
Not bad for a doomed company!
with the lowered guidance and lower margins. i expect it to fall
What lowered guidance?
i meant lower guidance than this time last year: Q3 is 33-35 billion compared to 39 billion revenue for last years’ Q3
Glad I was wrong. Too much experience watching AAPL do great, but get destroyed anyway. Maybe it’s finally turned.
Same here. I was wrong. I really thought the stock would plummet based on all the bad news reports that were going around. Good for those brave enough to purchase more shares before earnings call. I don’t have any spare money to take that sort of risk. I’m very glad to see a dividend increase which, in theory, would allow me to buy a high-end iMac every quarter. I still don’t think things are going to change much about Wall Street’s expectations of Apple. I won’t feel satisfied until Apple’s P/E gets back into the 12s and only then will I feel investors are gaining some confidence in the company.
FCK THE SYSTEM!
Sorry guys it looks good but net profit of $9.5 billion will make AAPL go slightly down unless investors appreciate (which they very well might) the upcoming.increased dividend…I’d say AAPL is -1% tomorrow.
“we are very excited about the products in our pipeline” – Tim Cook
Hey, Tim… NOBODY believes you. Quit saying that. It only hurts the company and the price of AAPL. You have been promising that over and over and over and over – even before handed you the reins of the once great company. All you have managed to do is minimal updates and refresh all equaling almost nothing. So, for the sake of all of us, quit saying that. You have been branded a liar or, worse, just someone who doesn’t have any idea of what you or your company is doing.
Nice
In the teeth… Once again.
+5% in AH
AAPL after hours trading back online.
Up over 4%.
BOOM!
Boom? Unfortunately cook had to start talking. That doesn’t help…
No kidding! Thanks for completely killing the after hours boom there Tim!! It never fails, every damn time he opens his mouth the stock freaking tanks.
BTW, thanks MDN for making the post about the AAPL release faster than other POS “news” outlets. When its good, they have “issues” updating in real time.
What good news have you gotten out of today’s conference call? Cook gave in to the Street, taking on debt to finance stock repurchase. Meanwhile, margins nosedived, and there won’t be any substantial product releases until autumn at earliest.
Much worse than I had hoped for, that’s for sure. Some headwinds are purely due to the macroeconomy, but it sure seems that Cook is taking a slow plodding, street-lackey approach on everything else.
Also note that Cook refuses to even acknowledge that the Mac platform exists. That hurts.
oh, wait: Tim does acknowledge the Mac platform actually exits. Guess what he tells us!
“We believe that the huge growth in tablets may end up benefitting the Mac ”
and
“we’ve got some more great stuff planned”
How long are you going to make us wait, Tim?
I’m disappointed to see that Apple plans to borrow to pay out dividends. That should make Wall Street happy. Apple now appears to have committed to return nearly ALL its profits over the next two years to shareholders, and financing loans for dividends, since it can’t use its overseas cash hoard. I hope this doesn’t negatively impact Apple’s expansion plans (data centers, R&D).
They have WAAAAAYYYYYY more money than they need for all operations and expansions. Unless they get a deal on reparations it makes much more sense to borrow at the current ridiculously low rates and leave the overseas cash alone.
Guidance for Q3 is 33-35 billion compared to 39 billion revenue for last years’ Q3. Ouch…
What will Wall Street ask for now that they have given in and announced borrowing, an increased dividend and expanded share re-purchase? It’s like a spoiled child, give them what they want and they will just want more.
Amen. I hate the idea of short term repayment of fickle “investors” read hedge funds who should all FOAD. They should be illegal and in jail forever, not rich bastards milking off the hard work of the rest of the country like overpaid vultures.
YKBAID? Translation, please.
You know…because Apple is DOOMED
This all looks good for investors that actually hold onto the stock. In the financial realm, Apple is becoming the Ma Bell and Kodak of old and the MS of recent. Appreciation of the stock is not what is being sought – just good old financial reward (dividends) for buying and holding the stock. Let us just hope that this stogy approach to finance does not take over in product development also. I never though I would say this, but I totally think things are going the wrong way at Apple and too much attention is being paid to the financial manipulating and not enough to product development. Only time will tell for sure.
You can forget 700$ with the kinda low guidance Apple gave for Q3:(
Biggest news of all: Apple is no longer a growth company. Cook has given in to the greedy scum on Wall Street:
share buyback FINANCED BY DEBT just because he’s too poor a manager to use the cash he already has in the bank for better purposes, including getting all those new products supposedly “in the pipeline” into the stores.
sigh. no stock bounce this month, folks. As Cook always reminds us, “just wait!”
You’re obviously not a Korean troll, but are you a Mt View troll? Why else would you spend precious time here. Life’s short, get one!
looked good for AAPL for a while almost up 6% but now going down again, about 3% up now, so the positive effect lasted for what 20 minutes or so?
Apple now pays me more in dividends this year than the entire cost of my AAPL stock when I bought it. So . . . Tell me, you complainers, what did I do wrong?
Sounds like you need to double check your math.