Apple smashes Street; iPhone, Services, Mac and Apple Watch set all-time records

Apple today announced financial results for its fiscal 2017 first quarter ended December 31, 2016. The Company posted all-time record quarterly revenue of $78.4 billion and all-time record quarterly earnings per diluted share of $3.36. These results compare to revenue of $75.9 billion and earnings per diluted share of $3.28 in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.

Market consensus called for the company to report revenue of $77.4 billion and $3.23 EPS.

“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch,” said Tim Cook, Apple’s CEO, in a statement. “Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”

“Our outstanding business performance resulted in a new all-time record for earnings per share, and over $27 billion in operating cash flow,” said Luca Maestri, Apple’s CFO, in a statement. “We returned nearly $15 billion to investors through share repurchases and dividends during the quarter, bringing cumulative payments through our capital return program to over $200 billion.”

Apple is providing the following guidance for its fiscal 2017 second quarter:
• revenue between $51.5 billion and $53.5 billion
• gross margin between 38 percent and 39 percent
• operating expenses between $6.5 billion and $6.6 billion
• other income/(expense) of $400 million
• tax rate of 26 percent

Apple’s board of directors has declared a cash dividend of $0.57 per share of the Company’s common stock. The dividend is payable on February 16, 2017 to shareholders of record as of the close of business on February 13, 2017.

AAPL Q117 Results

AAPl on Drudge Report

MacDailyNews Take: Boom! (In almost all areas, iPad* and Apple TV** excepted, as usual.)

These results show the power of what Steve Jobs hath wrought; no amount of bumbling can derail this train, so far.

*iPads needed to be updated for Christmas and iPad prices need to be more competitive.
**Apple TV needed to be updated to 4K for Christmas 2016.

56 Comments

    1. Apple revenues and unit sales of iPhones may have DECLINED YOY.

      Apple’s latest ended Q1 2017 has 1 full extra week of sales included compared to the same period last year. Because of this:

      Q1 2017: $78,351 revenues
      Q1 2016: $75,872 revenues
      For Q1 2017, average revenues per week = $5.596 billion. Shaving off a week of sales ($78,351 billion – $5.596 billion) = $72,872 billion in revenues for Q1 2017. That’s a ~4% decline in revenues YOY comparing a 13 week period of sales for this latest Q1 2017 Q vs. 13 week period of sales for Q1 2016.

      IPhone unit sales potential decline: 5.592 million units sold on average per week for Q1 2017. Applying this to 13 weeks = 72,697 million iPhone units. Compare to Q1 2016: 74,779 million units sold over 13 week period. This = ~2.8% unit sales decline YOY.

    1. Then petition amazon to get off their ass and release an app. That’s not apple’s fault, if amazon can make an iOS app, they can make an Apple TV app. You can also airplay your Amazon videos from your iPhone/iPad/iPod/Mac to your Apple TV over wifi.

    2. I have Amazon Video Prime. Watching “The Americans” on my IPad, IPhone or my TV using my AppleTV device (this one using the “AirPlay Mirroring ” feature …).

    3. Apple has provided developers with APIs to create any app they want. Technically, there is absolutely nothing preventing Amazon from creating an Amazon Videos app for Apple TV.

    4. Amazon won’t release an AppleTV app until they better terms than the 30% cut that Apple wants for all purchases.

      http://appleinsider.com/articles/16/05/31/amazon-to-exclude-apple-tv-from-prime-video-party-until-apple-agrees-to-acceptable-business-terms

      If you search for Apple TV on Amazon, you won’t find it their either.

      http://fortune.com/2016/06/01/apple-tv-amazon/

      Once the “kids” stop fighting, we’ll get Amazon Video on Apple TV. And we’ll be able to buy Apple TV V4 from Amazon.

      1. Amazon won’t release an AppleTV app until they GET better terms than the 30% cut that Apple wants for all purchases.

        If you search for Apple TV on Amazon.COM, you won’t find it THERE either.

        (I need to check before I post…)

  1. Great Quarter….look for the “talking heads” to go “Michael Blair” on the disappointing Q2 2017 outlook……..

    AAAAAAPPLE is clearly doooomed……and India is not fully online yet, along with $200bil repatriation of cash etc etc…

    dooooooooooooooooooooooooomed…….

    1. Multiply $3.36 in quarterly earnings per share times the number of diluted shares. Multiply by four for the annualized profit. Shares are selling for $121, but that is based on a ridiculously low ratio of price to earnings.

    1. Except nobody really did that. A few vocal nerds online obviously didn’t stop record sales, and physically selling many more than 78-80 million phones is going be hard to begin with. Think about that, in 90 days 78 million iPhones, that’s 866,667 per day. Let’s bump that up to 900,000 per day = 81,000,000. I think that’s about the physical limit of manufacturing to maintain 2 weeks inventory… that’s a ton of devices, and those people bitching about the headphone jack didn’t cause 3,000,000 sales to be lost.

  2. Nearly all of the numbers look nice. Weakest area was iPad sales. Mac sales essentially flat YoY, but revenue up due to higher ASP for MBPs, I would assume.

    Q2 forward guidance is not all that strong (for Apple!). But Apple is likely poised to beat that revenue range. If Apple comes out with some new desktops soon, then Q3 and Q4 will be fantastic.

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