Apple pulverizes the Street with record third quarter results

Apple today announced financial results for its fiscal 2015 third quarter ended June 27, 2015. The Company posted quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share. These results compare to revenue of $37.4 billion and net profit of $7.7 billion, or $1.28 per diluted share, in the year-ago quarter. Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.

Wall Street analysts’ consensus estimates called for Apple to report EPS of $1.81 on revenue of $49.31 billion for 31.70% YOY growth.

The growth was fueled by record third quarter sales of iPhone and Mac, all-time record revenue from services and the successful launch of Apple Watch.

“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Tim Cook, Apple’s CEO. “The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”

Cook told CNBC that Android to iPhone switchers are accelerating and hit the highest rate ever this quarter. Cook also sees Apple Watch as being a big holiday gift. Apple’s cash on-hand has broken above $200 billion for the first time.

Apple Inc. Q3 2015 Unaudited Summary Data
(Units in thousands, Revenue in millions)
Apple Inc. Q3 2015 Unaudited Summary Data (Units in thousands, Revenue in millions)
(1) Includes deferrals and amortization of related non-software services and software upgrade rights.
(2) Includes revenue from iTunes, AppleCare, Apple Pay, licensing and other services.
(3) Includes sales of Apple TV, Apple Watch, Beats Electronics, iPod and Apple-branded and third-party accessories.

“In the third quarter our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent,” said Luca Maestri, Apple’s CFO. “We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.”

Apple is providing the following guidance for its fiscal 2015 fourth quarter:
• revenue between $49 billion and $51 billion
• gross margin between 38.5 percent and 39.5 percent
• operating expenses between $5.85 billion and $5.95 billion
• other income/(expense) of $400 million
• tax rate of 26.3 percent

Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock. The dividend is payable on August 13, 2015, to shareholders of record as of the close of business on August 10, 2015.

Apple will provide live streaming of its Q3 2015 financial results conference call beginning at 2:00 p.m. PDT on July 21, 2015 at www.apple.com/quicktime/qtv/earningsq315. This webcast will also be available for replay for approximately two weeks thereafter.

MacDailyNews Take:

Apple CEO Tim Cook
Apple CEO Tim Cook

44 Comments

      1. Exoectations? Lol
        The company showes growth of 30% plus .
        Even 25% growth on guidance.
        And it drops 8 %
        Because some idiot had an expectation.
        The real numbers are the stellear growth.. Not some factious expectation !

          1. You all must be new to the Apple universe. It has been the same since 1998! Nearly every time that Apple posts increased earnings and record quarters the stock dips. It is uncanny.

            Perhaps the high frequency traders are trying to get an artificial dip so that they can earn billions on the bounce back?

    1. Yahoo Finance: “Apple (AAPL) posted fiscal third-quarter profits and sales that topped analysts’ estimates, but the iPhone-maker’s current-quarter revenue outlook disappointed investors.”

      3Q is always the less profitable quarter.

      1. Yet just as Apple starts the Conference Call Yahoo posts a head line that claims that Apple’s Revenue is “disappointing” and the stock starts dropping. . . and they claim that Apple missed the Street’s expectations on Revenue and EPS. . . but the numbers they are touting are NOT the numbers Yahoo was publishing at 8:30AM this morning! They are lying. Something stinks on Wall Street!

      2. It’s only the less profitable quarter if your guidance for the future doesn’t include any exciting new products and you’re too embarrassed to tell everyone exactly how your last product intro fared.

    2. And at the end of the day, after the game playing, AAPL is at 130.75, down 1% from the previous day. That makes sense to someone or other. Keep in mind that over the last few weeks AAPL has ridden the world economic woes trough and ended up at the end of this quarter up considerably. Overrall, it ends up making sense. With numbers like these AAPL damned well impresses, like it or not.

  1. Apple projects 21% YoY growth for the current quarter. If they top their prognosis — which is what they usually do, actual YoY growth will be at about 25%.

    This value is lower than for this quarter — 33% — because calendar Q3 in last year already included starting sales of iPhone 6 and iPhone 6 Plus, which were strong boost.

    For Q4 calendar quarter, it will be reasonable to expect moderate growth — maybe even within single digit figures, since the previous calendar Q4 was epic — with $74.5 billion sales. So Apple will probably top $80 billion, but it will be hard to top $90 billion.

    1. It’s basically telling potential investors to stay clear of the company because they won’t make any money from it. Invest in any other consumer tech company if you expect to get anything back. Google, Amazon and Microsoft are safe havens to get decent quarterly returns. Even with the huge amount of money Apple makes, Apple is going to burn investors every time.

      1. OH, yes, MAcnificentseven, Apple is so poor in decent quarterly returns that they only provided their stockholders with 121.5% of their net profits last quarter. Yes, you heard me correctly. Apple netted $10.7 Billion in net profits but returned $13 Billion to their investors last quarter! What a terrible investment! How horrid of them! What a terrible way to waste your money investing in AAPL.

  2. As usual, the stock is tanking after hours. Ignore those bozo’s because it’s a bunch of players, hedge funds and options traders freaking out and push the after market around to position themselves for tomorrow morning.

    Apple numbers are good and if these idiots are push the stock down just because they sold fewer iPads then so what, they made it up on the other items.

    I really thought the idea behind a business was to make money and grow. Seems like Apple does that very, very well and is still growing and for damn sure not loosing money like Samdung. Nothing in Apples projection says anything less for next quarter.

    1. What you’re saying is great for Apple the company, but terrible for shareholders. Amazon has already proven you don’t need profits to make a company profitable for shareholders. Instead of Apple constantly buying back shares, they should be growing the company much faster than Jeff Bezos is growing Amazon. Apple may have great focus but they’re not expanding like they could.

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