Apple beats Street with record fourth quarter results

Apple today announced financial results for its fiscal 2015 fourth quarter ended September 26, 2015. The Company posted quarterly revenue of $51.5 billion and quarterly net profit of $11.1 billion, or $1.96 per diluted share. These results compare to revenue of $42.1 billion and net profit of $8.5 billion, or $1.42 per diluted share, in the year-ago quarter. Gross margin was 39.9 percent compared to 38 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

As surveyed by Thomson Reuters, analysts’ consensus estimates called for earnings of $1.88 a share and revenue of $51.1 billion.

The growth was fueled by record fourth quarter sales of iPhone, the expanded availability of Apple Watch, and all-time records for Mac sales and revenue from services.

Product summary:
• iPhone: 48.046 million units, $32.209 billion revenue (vs. 39.272 million, $23.678 billion YOY, +22% unit and +36% revenue increase YOY)
• iPad: 9.883 million units, $4.276 billion revenue (vs. 12.316 million units, $5.316 billion YOY, -20% units and -20% revenue YOY)
• Mac: 5.709 million units, $6.882 billion revenue (vs. 5.520 million units, $6.625 billion YOY, +3% units and +4% revenue YOY)
• Services*: $5.086 billion revenue (vs. $4.608 billion, +10% YOY)
• Other Products**: $3.048 billion revenue (vs. $1.896 billion, +61% YOY)

*Includes revenue from Internet Services, AppleCare, Apple Pay, licensing and other services.
**Includes sales of Apple TV, Apple Watch, Beats products, iPod and Apple-branded and third-party accessories. Includes deferrals and amortization of related software upgrade rights and non-software services.

Analyst projections as per FactSet were:
• iPhone sales: 48 million units, $31.37 billion
• iPad sales: 10 million units, $4.37 billion
• Mac sales: 6 million units, $6.81 billion

“Fiscal 2015 was Apple’s most successful year ever, with revenue growing 28% to nearly $234 billion. This continued success is the result of our commitment to making the best, most innovative products on earth, and it’s a testament to the tremendous execution by our teams,” said Tim Cook, Apple’s CEO, in a statement. “We are heading into the holidays with our strongest product lineup yet, including iPhone 6s and iPhone 6s Plus, Apple Watch with an expanded lineup of cases and bands, the new iPad Pro and the all-new Apple TV which begins shipping this week.”

“Apple’s record September quarter results drove earnings per share growth of 38% and operating cash flow of $13.5 billion,” added Luca Maestri, Apple’s CFO. “We returned $17 billion to our investors during the quarter through share repurchases and dividends, and we have now completed over $143 billion of our $200 billion capital return program.”

Apple is providing the following guidance for its fiscal 2016 first quarter:
• revenue between $75.5 billion and $77.5 billion
• gross margin between 39 percent and 40 percent
• operating expenses between $6.3 billion and $6.4 billion
• other income/(expense) of $400 million
• tax rate of 26.2 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 November 12, 2015, to shareholders of record as of the close of business on November 9, 2015.

MacDailyNews Take: The iPad swoon YOY is glaring.

• UPDATE: 4:50pm EDT: AAPL After Hours : 116.75 Up 2.20 (1.92%) 4:50PM EDT

SEE ALSO:
MacDailyNews presents live notes from Apple’s Q415 Conference Call – October 27, 2015

40 Comments

    1. Actual real investors buying or holding Apple long will rejoice at these numbers. All is well at Apple.

      Wall Street’s emotionally driven traders will wring their hands and pound their chests, picking out some minutiae to generate FUD and manipulate the emotions of other traders in their pump and dump schemes.

    1. It’s down as of 3:05 pm PST. Just focus on the long term. The report was simply stellar, despite the predictions of analysts who claimed that AAPL had nothing left after increasing the screen size of the iPhone 6.

    2. It’s a dangerous game fueled by greed and stupidity. The ink on today’s results barely has time to dry before some fool starts crying that Apple is “doomed” because they’ll never top these results. Why does a company as successful as Apple have to outdo itself every quarter to avoid being written off by these morons?

  1. Another fantastic quarter with outstanding results; wonder what Wall Street now thinks seeing how they were stating, earlier in the week, that Google, Microsoft and Amazon just may have set the bar too high for !!!!

    1. I think you spoke too soon. Apple will tank as expected. There’s too many holes in the earnings call, so it adds up to another wasted quarter for shareholders. Every quarter Apple falls short of all expectations to make any gains. They’d have to beat everything and I don’t think that’s even possible. Apple’s iPad business is done for and there’s no product on the horizon to replace it.

      It’s just another Tim Cook joke. Best September quarter ever. Apple stock tanks. Amazon, Alphabet and Microsoft did set the bar too high for Apple. Apple would need to have a 20′ pole to vault as high as those companies.

    1. I’m hearing from buyers, “too expensive for what it does”, “How much for a ‘keyboard?” Many are getting Surfaces instead. Misguided, yes, but nonetheless they make their buying decisions based on TV commercials. Where is the kick ass ad for the iPad Pro?

  2. They will parrot there is too much reliance on iPhone. However the services and other products increase rather shows the true potential for growth. But they do need to do something about the iPad let’s hope the Pro helps.

    1. The pundits have already given the iPad Pro the Kiss of Death. Too expensive for the masses so almost no one will be buying it. Limited supplies right out the gate. They’ve already made the call how the iPad Pro will do absolutely nothing for Apple’s iPad business. Zero product, so there’s no hope there.

      1. Your view fall short my friend. Apple is too big. They shoot on all front market now.

        They design the iPadPro for IBM… Remember IBM and Apple have been joining for iOS in entreprise? Maybe you didn’t know.

        BTW, take a look at the patents portfolio of Apple. It will give you a hint at the futur of Apple. Maybe you didn’t know that either…

        Go play with your xbox now…

  3. Would somebody please explain what possible difference any of this makes to AAPL shareholders? I know that Hillary asked that question about the murder of four Americans in Bengazi, but it’s relevant here. Thank you.

    If Tim had concluded the day with a declaration that he was taking his zillions of dollars and retiring, THEN we would have something that could finally make a difference in our investment.

  4. Who say’s they can’t grow. They showed growth in every sector except one, the iPad. Even so, it barely missed the mark and this will change with the iPad Pro’s coming out.

    For me the glaring number is the Mac sales. Apple shows a +3% units and +4% revenue growth when the PC industry is in in a down spiral.

    It’s not a sprint but a marathon. Great job Apple!

    1. “For me the glaring number is the Mac sales.”

      To me also Mac sales are very important, as they lessen the big investors worry of ‘one product iPhone company’.

      The sales are excellent but i think it would be much higher if they ADVERTISED Macs.

      No serious Mac ad campaigns for many years right through Win 8 fiasco, just a few scattered ads like Macbook ‘stickies’ ads that ran for a few weeks, I don’t even see print or web ads. In the old days under Jobs for example there were 66 different Mac/PC guy TV ads (one new one a month) for 4 years.

      C’mon Apple you make them, spend hundreds of millions on R&D , they are great products, with lower market share than iPhones there’s room to grow … so MARKET them hard!

  5. iPad is taking a hit because of HUGE iPhone 6s+ size and the pending HUGE iPad Pro + Pencil being debuted in the near future. People are just waiting or the Big iPhone 6s+ is enough for them. IBM / Apple Enterprise Alliance will produce more iPad sales in the future.

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