Apple today announced financial results for its fiscal 2016 third quarter ended June 25, 2016. Apple posted quarterly revenue of $42.4 billion and quarterly net income of $7.8 billion, or $1.42 per diluted share. These results compare to revenue of $49.6 billion and net income of $10.7 billion, or $1.85 per diluted share, in the year-ago quarter. Gross margin was 38 percent compared to 39.7 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter’s revenue.
“We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter,” said Tim Cook, Apple’s CEO, in a statement. “We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June.”
“Our Services business grew 19 percent year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record,” said Luca Maestri, Apple’s CFO, in a statement. “We returned over $13 billion to investors through share repurchases and dividends, and we have now completed almost $177 billion of our $250 billion capital return program.”
Operating Segments:
• Americas: $17.953 billion (-11% YOY)
• Europe: $9.643 billion (-7% YOY)
• Greater China: $8.848 billion (-33% YOY)
• Japan: $3.529 billion (+23% YOY)
• Rest of Asia Pacific: $2.375 billion (-20% YOY)
Product Summary:
• iPhone: 40.399 million units, $24.048 billion revenue (-15% units, -23% revenue YOY)
• iPad: 9.950 million units, $4.876 billion revenue (-9% units, +7% revenue YOY)
• Mac: 4.252 million units, $5.239 billion revenue (-11% units, -13% revenue YOY)
• Services: $5.976 billion revenue (+19% YOY)
• Other Products: $2.219 billion revenue (-16% YOY)
Notes:
1. Services includes revenue from Internet Services, AppleCare, Apple Pay, licensing and other services.
2. Other Products includes sales of Apple TV, Apple Watch, Beats products, iPod and Apple-branded and third-party accessories.
Apple is providing the following guidance for its fiscal 2016 fourth quarter:
• revenue between $45.5 billion and $47.5 billion
• gross margin between 37.5 percent and 38 percent
• operating expenses between $6.05 billion and $6.15 billion
• other income/(expense) of $350 million
• tax rate of 25.5 percent
Apple’s board of directors has declared a cash dividend of $.57 per share of Apple’s common stock. The dividend is payable on August 11, 2016 to shareholders of record as of the close of business on August 8, 2016.
Apple will provide live streaming of its Q3 2016 financial results conference call beginning at 2:00 p.m. PDT on July 26, 2016 at . This webcast will also be available for replay for approximately two weeks thereafter.
Analysts expected:
• EPS of $1.38 (Thomson Reuters) – $1.40 (FactSet) – $1.42 (Estimize)
• Revenue of $42.09 billion (Thomson Reuters) – $42.2 billion (FactSet) – $42.1 billion (Estimize)
MacDailyNews Take: Solid.
YKBAID.
UPDATE: AAPL After hours: $101.56, up $4.89 (+5.06%) as of 4:53PM EDT.
Laughing at the usual Apple Clowns on this site who have been ripping them to shreds. Huge azzclowns. Now Cook has to really earn his money.
What’s to laugh about?
YOY, 4 out of 5 markets are down.
YOY, iPhone, iPad and Mac sales are all down.
https://www.thestreet.com/story/13653388/1/why-analysts-got-too-negative-on-apple.html
Go back under your rock Hoe.
Revenues down 15% YOY…
Other category down 16% YOY…
No matter what Cook or anyone else says, this is the bottom line.
Apple’s revenues are still incredible. But they are on a massive downward spiral. Looking at the charts, we’re now past the pattern of a downward trend and if the next quarter is down, then Apple will have slid hard.
Cook nees to get his shxt together. How’s the Apple Watch doing? Right. Apple TV?
Apple is resting on its iPhone, which is now curtailing. They need to step it up hard in their other areas.
If the iPhone 7 is really like the leaks, that’s pretty lame. We need a new design and new materials. Aluminum sucks for many reasons.
Growth of anything is not necessarily linear. There are ups and downs. Gotta look at the fundamentals. And the supra-mentals, too. I just made that up. Dude, makes me feel like Shakespeare…
Oh gawd… the trite excuses.
Ya, totally. The trite excuses …for while Apple is totally washed up. he he he Have you figured it out yet? Didn’t think so…
why …not while
If you plot Amazon’s market value growth it will only take a few more years to zoom right past Apple while Tim Cook twiddles his thumbs. Over the last 10 years Apple is up 1000% while Amazon is up 2000%. It’s only a matter of time. Amazon is already being christened as the first trillion dollar market cap company while Apple isn’t even a close second. It’s a far cry from when Apple was at $755 billion in market cap. Those days are long, long gone. Even with a mountain of cash to play with, Tim Cook doesn’t know how to put value into Apple the way Jeff Bezos can do it with Amazon.
I’m an Apple shareholder and I’m only calling it as I see it. What else can I do? I like Apple and I’ve done well by it but it seems the handwriting is on the wall… Jeff Bezos’ handwriting.
The past is no prediction of the future.
Even mighty oak trees do not grow into the sky.
We get it: you are pissed off that Apple’s remarkable growth story has not continued, uninterrupted, over the past few years.
Please give it a break.
I have been making an effort to moderate my critical tone on this forum but, dude, you appear to be clueless about the stock market. How much profit does Amazon make?? And what is their P/E ratio??
Bezos is not magically “putting value” into Amazon and Cook is not somehow removing value from Apple. It is the market – rumor, speculation, fears, uncertainty, doubt, wild illogic, emotions, and superstition. The rational stock market only exists in books.
But please feel free to put all of your investment money into Amazon. After all, the best way to grow your money is to buy into a stock that has risen 2000% in a decade while the company is unable to produce significant profits relative to that valuation. Investors are still thinking that “someday profit growth will come.” When it does not, the fall of Amazon stock will be historic in an epic sense.
What your beef dude?
You are constantly bashing Apple…and Tim…
What do you get out of it ?
👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻
Fck The System! AAPL Long. Where are your PROFITS FANG? How are your margins BOZOS. Gaagle me with a spoon. gmafb.
Amazon made $500 million profits last quarter and the stock jumped 12% because investors are in love with Jeff Bezos. Apple makes $7.8 billion in profits (down YOY) and there’s a lynching party out looking for Tim Cook.
Profits don’t mean anything if investors don’t like the company or the CEO running the company. I’m sure Tim Cook is despised on Wall Street ever since he told the big investors to screw themselves if they’re only in it for the money. Of course, they’re only in it for the money. Nothing else matters to the big hedge fund investors.
macnificentseven48, You are getting even more bitter as you age.
Might be a sign of Wall Street Alzheimer’s: you forget everything but the bad trades!
Colon Gillis = Alpha Buttwipe Manipulator
Colin Gillis and CNBC simply hate Apple, I wish if there is someone out there could help them seal their mouths. We are so sick of their BIG shitty mouths.😳😰😬😷
I was watching the, fast money halftime report when they cut short an interview to a, “this just in”, to give colon (spelt right) Gillis his time to manipulate. Stock dropped from .60 to 1.30 after his blatherings.
If Apple was smart, they’d acquire a news company the same way Jeff Bezos did. Apple would be able to twist the news in their favor the same way MSNBC does for Microsoft.
In your face, Colin 👍 I’m eager to hear him ‘splain this away.
I saw him trying to wipe the egg off his face. He steadfastly calls a diamond a piece of coal and is still convinced Apple is failing everywhere . He’s just the new Eddie Zabitsky spewing the usual “YKBAID” silliness. Doofus
I want to know how much stock they bought back this quarter
With Karl Ichan having sold his shares maybe none.
Johnny come lately don’t know shit
Just buy AAPL and let it sit.
And the dividends just keep on coming.
TECHBUFFALO = SAMDUNG SCHILL & PURE FUD.
ahhhh….gotta luv Colon Gillis just got smoked on his downgrade of AAPL…….LOL!!
Colin Gillis = Paid SAMDUNG SCHILL, still babbling an AAPL downgrade. FU!
Sounds like we need a Colon Cleansing…
Bought in 1999. Still holding. I got called an idiot for buying in, and every time the stock price dips, APPL holders are called stupid. I just laugh and laugh.
Bought in Spring 2003. Share price is up about 10,000 % …excluding dividends. ha ha ha
If it were not for the Japanese market Apple would really suck with Tim Cook. Seriously, Tim Cook needs to send a “Thank You” card to the Japanese.
Hey Frank. You sound like an accountant trying to explain away something you do not understand. Why not just STFU? Much easier. Chill.
I think we should compare Apple’s financial performance with others before jumping into the conclusion that apple’s magic is fading.