Apple today announced financial results for its fiscal 2014 third quarter ended June 28, 2014. The Company posted quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion, or $1.28 per diluted share. These results compare to revenue of $35.3 billion and net profit of $6.9 billion, or $1.07 per diluted share, in the year-ago quarter. Gross margin was 39.4 percent compared to 36.9 percent in the year-ago quarter. International sales accounted for 59 percent of the quarter’s revenue.
Apple’s board of directors has declared a cash dividend of $.47 per share of the Company’s common stock. The dividend is payable on August 14, 2014, to shareholders of record as of the close of business on August 11, 2014.
“Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters,” said Tim Cook, Apple’s CEO, in a statement. “We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.”
“We generated $10.3 billion in cash flow from operations and returned over $8 billion in cash to shareholders through dividends and share repurchases during the June quarter,” added Luca Maestri, Apple’s CFO. “We have now taken action on over $74 billion of our $130 billion capital return program with six quarters remaining to its completion.”
Apple Q314 results:
• iPhone: 35.203M units, $19.751B revenue (vs. 31.241M units, $18.154B revenue YOY)
• iPad: 13.276M units, $5.889B revenue (vs. 14.617M units, $6.374B revenue YOY)
• Mac: 4.413M units, $5.540B revenue (vs. 3.754M units, $4.893B revenue YOY)
• iPod: $2.926M units, $442M revenue (vs. 4.569M units, $733M revenue YOY)
• iTunes/Software/Services: $4.485B revenue (vs. $3.990 B revenue YOY)
• Accessories: $1.325B (vs. $1.179B revenue YOY)
Apple is providing the following guidance for its fiscal 2014 fourth quarter:
• revenue between $37 billion and $40 billion
• gross margin between 37 percent and 38 percent
• operating expenses between $4.75 billion and $4.85 billion
• other income/(expense) of $250 million
• tax rate of 26.1 percent
Apple will provide live streaming of its Q3 2014 financial results conference call beginning at 2:00 p.m. PDT on July 22, 2014 at www.apple.com/quicktime/qtv/earningsq314. This webcast will also be available for replay for approximately two weeks thereafter.
According to a Thomson Reuters’ survey of analysts, estimates called for $1.23 per share on revenue of $37.98 billion in revenue. The whisper number was $1.28 EPS. Of 34 analysts recently polled by Fortune, the average unit sales expected were: 35.78 million iPhones, 14.43 million iPads, 3.93 million Macs, and 2.34 million iPods, with $3.99 billion in iTunes/Software/Services and $1.28 billion in Accessories.
MacDailyNews Take: Note the possible blossoming of significant halo effect benefitting Mac.