Apple beats Street with record quarterly revenue, record iPhone and iPad unit sales

Apple today announced financial results for its fiscal 2014 first quarter ended December 28, 2013. The Company posted record quarterly revenue of $57.6 billion and quarterly net profit of $13.1 billion, or $14.50 per diluted share. These results compare to revenue of $54.5 billion and net profit of $13.1 billion, or $13.81 per diluted share, in the year-ago quarter. Gross margin was 37.9 percent compared to 38.6 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter’s revenue.

Apple sold 51 million iPhones, an all-time quarterly record, compared to 47.8 million in the year-ago quarter. Apple also sold 26 million iPads during the quarter, also an all-time quarterly record, compared to 22.9 million in the year-ago quarter. The Company sold 4.8 million Macs, compared to 4.1 million in the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $3.05 per share of the Company’s common stock. The dividend is payable on February 13, 2014, to shareholders of record as of the close of business on February 10, 2014.

“We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services,” said Tim Cook, Apple’s CEO, in a statement. “We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better.”

“We generated $22.7 billion in cash flow from operations and returned an additional $7.7 billion in cash to shareholders through dividends and share repurchases during the December quarter, bringing cumulative payments under our capital return program to over $43 billion,” said Peter Oppenheimer, Apple’s CFO, in a statement.

Apple is providing the following guidance for its fiscal 2014 second quarter:

• revenue between $42 billion and $44 billion
• gross margin between 37 percent and 38 percent
• operating expenses between $4.3 billion and $4.4 billion
• other income/(expense) of $200 million
• tax rate of 26.2 percent

Analysts surveyed by Thomson Reuters prior to today’s results expected Apple to earn $14.07 per share on $57.45 billion in revenue.

MacDailyNews Take: Expect to hear that Apple iPhone sales and revenue guidance were weaker than expected.

YKBAID.

UPDATE 4:50PM EST: In after-hours trading, Apple (AAPL) shares are down $31.35, or -5.69%, to $519.15.

69 Comments

      1. Quoting from the related article at AppleInsider:

        http://appleinsider.com/articles/14/01/27/apple-reports-131b-in-q1-2014-profit-on-record-sales-of-51m-iphones-26m-ipads
        Both the iPhone and iPad sales figures for the December quarter were new records for Apple, besting sales of 47.8 million iPhones and 22.9 million iPads in the year-ago quarter.

        Shares of Apple fell nearly 6 percent after the results were first revealed Monday afternoon. Market expectations called for Apple to post $58 billion in revenues on sales of around 56.5 million iPhones and 24.5 million iPads.

        Apple has a record quarter. But someone (who?) set the expectations waaayyyy out in LaLaLand as a built-in guarantee that record results could be taken as BAD.

        IOW: Wall-Nut Street is thoroughly FCUKED. Outrageous lunacy. Just GOTTA FUD Apple, these worthless biznizz bozo ids.

        1. Stock price may or may not toil around the low 500’s until Apple releases their next “big” product. But when they do…watch out. Very smart people around Apple even without Jobs. But what are they working on?!?! It’s been 4 years since the iPad was released.

    1. No need to twist it into negative. Look at the guidance for next quarter; even though it’s a slow quarter that guidance is too low.

      I believe that’s the reason why stock price dropped after hours.

    2. Or they will just borrow this text from 2002, as for us, SOME PERSPECTIVE!
      “Apple® today announced financial results for its fiscal 2002 fourth quarter ended September 28, 2002. For the quarter, the Company posted a net loss of $45 million, or $.13 per share. Apple shipped 734 thousand Macintosh® units during the quarter, down 14 percent from the year-ago quarter.”

    1. Apple is nothing but a huge bag of hurt for shareholders. Don’t try to reason it or analyze it. It will do you no good. Enough said.

      Enjoy the fact that Carl Icahn got kicked in the nuts today after buying $1B of Apple stock a few days ago. Oh, how that must have hurt. “No-brainer” he said. He must have been referring to himself.

  1. It is Apple Christmas, I have so much hope for Apple even though Apple beats Wall Street expectation. However, AAPL tanks after hour. What a strange world after all.

    1. Stock manipulation. Short the stock to trigger selloffs, then buy yourself at the lower price you’re comfortable with, resell once you secure the dividend and price increased, then repeat ad infinitum.

      This strategy is making the fortunes of a lot. icahn is one of those happiest to resort to this.

      1. Innovation is when you make something that actually works, that people want, and that you can make a profit on….oh, and also that you didn’t COPY from someone else.

          1. “Innovation” implies inventing something of value that is widely adopted:

            From the Miriam Dictionary:

            “Examples of INNOVATION:

            “She is responsible for many innovations in her field.”
            “…the latest innovation in computer technology…”
            “Through technology and innovation, they found ways to get better results with less work.”
            “…the rapid pace of technological innovation…”

          1. Several terms come to mind: Insipid. Facile. Myopic. Un-original. Clueless…to name a few.

            By this standard Google Glass in not an innovation either. It’s just eyeglasses combined with a video camera. Nothing new here.

            1. Everything is a remix, right, Zeke?

              There is no new thing under the sun. And because of these eternal verities, it could be, and has been, argued without irony that no one deserves accolades for anything, including producing offspring. That too has been done before. But people will persist, and find accolades despite such cant. A fresh, new, joyously smiling face brought into the world never fails to soften the heart and arrest the rhetoric of even the most hardened cynic — excepting a handful of enervated, twisted little trolls that lurk in the interstices of cyberspace, alert for signs of newborn hope, the better to devour it whilst tender.

    1. Google’s 3 Stooges (Schmidt, Page and Brin) are probably laughing their heads off as Android cripples iPhone sales in the millions of units. Google controls Apple’s mobile business by using Android as a giveaway disrupter. It’s hardly costing Google anything to ruin Apple’s mobile hardware business while Google’s search engine and ad business go untouched and unchallenged.

      Tim Cook is clueless and will keep hoarding Apple’s cash pile until Apple’s share price reaches the cash value. I warned you people that Wall Street’s perception of Apple is of a failing company but the Loyal Apple Apologists just keep hoping for some miracle to take place. Expect more of the same pounding next quarter.

      1. Bit slow on the uptake Mickey, Wall Street has always thought of Apple as an ailing company at least since the late 80s. You are just another broken if amusing record that we have heard a thousand times before and irrelevant to reality when you simply parrot from previous years.

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