Apple destroys Street with all-time record earnings

Apple today announced financial results for its fiscal 2015 first quarter ended December 27, 2014. The Company posted record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. These results compare to revenue of $57.6 billion and net profit of $13.1 billion, or $2.07 per diluted share, in the year-ago quarter. Gross margin was 39.9 percent compared to 37.9 percent in the year-ago quarter. International sales accounted for 65 percent of the quarter’s revenue.

The results were fueled by all-time record revenue from iPhone and Mac sales as well as record performance of the App Store. iPhone unit sales of 74.5 million also set a new record.

“We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high,” said Tim Cook, Apple’s CEO, in a statement. “Our revenue grew 30 percent over last year to $74.6 billion, and the execution by our teams to achieve these results was simply phenomenal.”

Apple Unit Sales Q115:
iPhone: 74.468 million (vs. 51.025 million YOY, +46% YOY)
iPad: 21.419 million (vs. 26.035 million YOY, -18% YOY)
Mac: 5.519 million (vs. 4.837 million YOY, +14#% YOY)

“Our exceptional results produced EPS growth of 48 percent over last year, and $33.7 billion in operating cash flow during the quarter, an all-time record,” said Luca Maestri, Apple’s CFO, in a statement. “We spent over $8 billion on our capital return program, bringing total returns to investors to almost $103 billion, over $57 billion of which occurred in just the last 12 months.”

Apple is providing the following guidance for its fiscal 2015 second quarter:
• revenue between $52 billion and $55 billion
• gross margin between 38.5 percent and 39.5 percent
• operating expenses between $5.4 billion and $5.5 billion
• other income/(expense) of $350 million
• tax rate of 26.3 percent

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 February 12, 2015, to shareholders of record as of the close of business on February 9, 2015.

Thomson Reuters analysts’ consensus estimates called for net income of $2.60 a share (compared with a split-adjusted $2.07 YOY). Analysts forecast record revenue of $67.7 billion (versus then-record $57.6 billion reported in Q114). Analysts polled by Fortune forecast iPhone unit sales of 66.5 million (vs. 51.025 million in Q114).

MacDailyNews Take: Boom!

Thermonuclear
Thermonuclear.

50 Comments

    1. I don’t know why people insist on saying the stock “always” drops after earnings. It doesn’t. It must be some sort of false persecution complex Apple users have that causes this reflex. I’ve followed and invested in this stock steadily over the last 15 years and it goes up after earnings with enough frequency that makes this “always drops” claim seem outright stupid.

  1. So what makes all this doomsday bulshit news all day tick…?

    What makes Apple down 4% when everyone knew Apple had a record sales quarter?????

    Assholes with money that want more and more and can only succeed by scaring everyone away

    1. There have to be some factions that are deliberately working to devalue Apple for their own benefit. Apple is making more revenue in a quarter than most companies make in a year. Apple’s profits in a quarter is more than many companies make in a year. However, Apple is said to be overvalued and I don’t understand how that could possibly be. Apple is fairly unique as a company and it generates large revenues for many other companies.

      1. Another consideration is that AAPL is a great source of liquidity, and other tech stocks experienced a minor bloodbath today. Some of the cash that moved out of AAPL was probably used to cover bad positions in other stocks – like MSFT.

    1. Yeah, but wait a couple of hours for the Wall Street Weenies/ANALysts to put their spin on it and it will have only clawed back $1 or so on the $3.96 loss this afternoon. It never fails. Like Breeze pointed out above “Assholes with money that want more and more and can only succeed by scaring everyone away”! One or more of them are going to find a negative in the report somewhere and blow it out of proportion and those long term shareholders are gonna take it in the shorts again.

      1. It was a pretty slick move on Wall Street’s part to take Apple down pre-earnings then allow it to rise back to normal post-earnings. It all adds up to smoke and mirrors for Apple shareholders. Apple has a uniquely massive quarter and basically rises 1 or 2%. Netflix rose about 25% post-earnings which kind of makes Apple’s earnings look pretty ridiculous.

        I expected as much to happen and I’m at least satisfied that Apple’s P/E finally exceeded Microsoft’s P/E thanks to Microsoft tripping over its own feet. I’ll see an increased dividend and I feel for certain that Tim Cook is doing what he’s supposed to do.

  2. The talking heads who have been predicting Apple’s inevitable demise at the hands of Samsung and Google can officially STFU. These numbers are simply staggering. Good luck to the Michael Blairs, Henry Blodgets, etc who will attempt to spin this as a sign of upcoming market weakness. Congratulations to all the investors and believers who drowned out the noise and stayed the course!

    1. They will never officially do anything but burn on hell for their misleading of innocent ignorant investors…

      In Apple we trust, all others can talk the talk but never walk the walk.

      The only investment you can count on for a proerous future is AAPL, Apple is the only company in this greedy country that consumers and users can trust and that cares.

    2. Henry Blodget said he was dumping his Apple stock but did he really? I personally hope all those ignoramuses betting on Android take a paddle beating but they’ll continue to support Android because of their stoic belief in whoever has the most market share wins in the end. They’ll continue saying that from this point Apple can only go down and meet its inevitable doom.

      I would never listen to these people because what they say makes no sense when Apple is making actual money hand over fist. It may never translate into a high share price for Apple but the company appears to be rock solid if you believe in fundamentals. Wall Street apparently does not believe in fundamentals but instead believes in smoke and mirrors to artificially boost companies share prices.

      1. It’s hillarious that Blodget a convicted criminal and certified Apple hater and ignoramus, actually bought any Apple stock in the first place…

        Yeah right he’s Mr. Credibility alright 👀👀👀

      1. Seems like they’d have to do something. They earned $3.09 a share and the dividend is 47 cents. They can’t give it away fast enough. Either the dividend or the buybacks have to increase. Unless they want to buy Intel or something 😉

    1. If I borrow five dollars from you and then give you back six dollars would you be jumping for joy. Probably not. That’s what Wall Street did to Apple today. You look at the gain as +5.3 but it’s really much less. I’ll only say it could have been much worse and I’ll take whatever i can get.

        1. Apple lost what should ha e been a clean gain of at least 6%-12%, due to bogus manipulation by the bog holders that can afford to trickle sell to bring it down so that they can then buy at way below market. (they know Apple watch will be huge)

          Apple is worth at Least $200 right now and is golden as far as a quality investment, with better rating than the US…

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.