Apple today announced financial results for its fiscal 2018 first quarter ended December 30, 2017. The Company posted quarterly revenue of $88.3 billion, an increase of 13 percent from the year-ago quarter and an all-time record, and quarterly earnings per diluted share of $3.89, up 16 percent, also an all-time record. International sales accounted for 65 percent of the quarter’s revenue.
A reminder that this was a 13-week first quarter in 2018 vs. 14-week first quarter in fiscal Q1 2017.
These results were versus Thomson Reuters consensus estimates of $3.86 per share and revenue of $87.28 billion
“We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November,” said Tim Cook, Apple’s CEO, in a statement. “We’ve also achieved a significant milestone with our active installed base of devices reaching 1.3 billion in January. That’s an increase of 30 percent in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers.”
“Thanks to great operational and business performance, we achieved all-time record profitability during the quarter, with EPS up 16 percent,” said Luca Maestri, Apple’s CFO, in a statement. “Cash flow from operations was very strong at $28.3 billion, and we returned $14.5 billion to investors through our capital return program.”
• iPhone: 77.316 million units, $61.576 billion revenue (YOY change: – 1% units, +13% revenue)
• iPad: 13.170 million units, $5.862 billion revenue (YOY change: +1% units, +6% revenue)
• Mac: 5.112 million units, $6.895 billion revenue (YOY change: -5% units, -5% revenue)
• Services: $8.471 billion (YOY change: +18% revenue)
• Other Products: $5.489 billion (YOY change: +36% revenue)
– “Services” includes revenue from Digital Content and Services, AppleCare, Apple Pay, licensing and other services. Services revenue in the fourth quarter of 2017 included a favorable one-time adjustment of $640 million due to a change in estimate based on the availability of additional supporting information.
– “Other Products” includes sales of Apple TV, Apple Watch, Beats products, iPod touch and Apple-branded and third-party accessories.
Apple is providing the following guidance for its fiscal 2018 second quarter:
• revenue between $60 billion and $62 billion
• gross margin between 38 percent and 38.5 percent
• operating expenses between $7.6 billion and $7.7 billion
• other income/(expense) of $300 million
• tax rate of approximately 15 percent
Apple’s board of directors has declared a cash dividend of $0.63 per share of the Company’s common stock. The dividend is payable on February 15, 2018 to shareholders of record as of the close of business on February 12, 2018.
Thomson Reuters consensus estimate expected earnings of $3.86 per share, revenue of $87.28 billion, and Q218 revenue guidance of $65.73 billion. StreetAccount expected Q218 margin guidance of 38.9%. FactSet expected iPhone unit sales of 80 million.
MacDailyNews Take: Guidance may be an issue, but, obviously:
SEE ALSO:
MacDailyNews presents live notes from Apple’s Q118 conference call – February 1, 2018
And of course AAPL is down on the news. Whisper number was $90 billion on the top line, so “only” $88.3 billion is a disappointment to the wall street pump-and-dump machine.
Apple guides for 13-15% YOY revenue increase but the headlines will say that’s not good enough.
Because last year was a 14 week quarter, iPhone sales are actually up 6% units but you can be damn sure the headlines will emphasize down 1% YoY.
What a racet the market is… wow…
down on this performance ?
Stock is currently up in after hours trading
Really i show 2.3$ down ..
http://www.nasdaq.com/symbol/aapl/after-hours-chart
Ok never mind. Mine wasn’t refreshing lol
‘Now’you would have been right ;). Its slightly up
Hell yeah and congrats to all the long term shareholders 🥂
Smashed street?? Mdn wtf are you talking about? They missed on phones iPads and macs.
Quarterly revenue of $88.3 billion.
I believe that the point is, Apple could have profited more if iPhone, iPad, and Mac sales were better than expected.
Who cares how many they sold? It’s the revenue and profit that matters
No shit Sherlock. It sounds like you have the intelligence and knowledge to be an analyst.
That’s not a compliment, by the way.
Wow, “Fred”, your business wisdom is inspiring.
I believe that the point is, Microsoft could have profited more if Windows/Surface sales were better than expected.
But see, if revenue had been $100 billion, it would have been MORE! As long as I can think up a higher number than Apple makes in revenue, it’ll always be time to LET TIMMY GO!!!
The guidance was likely too low for them as well, even though it would be a record (Apple) Q2. The stock will rebound and do well going forward when the enormity of the numbers sinks in.
“iPhone X surpassed our expectations”
This ought to smash those reports of disappointing sales, but alas I fear it won’t.
Cook also said that the sales of iPhone X s “off the chart”.
There was no super cycle materialized on the X. Stop hyping, and stop hiding actual sales number of the X.
The phone sales is now more than 70% of Apple’s total revenue (i.e. overpriced). Something to worry about. Take the phone business out of Cook’s hands, and make it into a separate company, and put more emphasis on the Mac, which is less than 10% of the revenue.
Really kent? 88b is all doom and gloom and iPhone X conspiracy theories? I guess you are just a glass is half empty kind of guy…honestly man..get a life!
Did you rad the entire conference call? Sales of the X DID NOT reach the expectation, and this is the fact. And Apple is not releasing the number of the X sold. It is the fact that the sales of the X was not as expected. But the other model sold well. But I am more worried about Apple becoming a one rick pony company. Smartphone sales are reaching the plateau and if Apple continues to concentrate resources in the phone business, and when people are becoming keenly aware of the overpricing (that’s why the X sales was not as good as expected), the collapse is just as easy to come. That’s what I am saying. I lament the loss of innocence of Apple. Phone is fine. Godd for Apple. But, you know….
A one rick pony, KenT?
Sounds like you, a one KenTrick pony.
And my prediction is that, Cook & Co., learned that consumers are smarter than they thought they were. Apple will regroup and come up with 2 or 3 or whatever number of the iPhone models next cycle. BUT at the more sustainable (still high, but sustainable) price. To do that, they have to reset a few things, and one of which is completely cancel the current X altogether with its pricing. They can’t keep overpricing next models this fall, which are suppose to be better than the current X, but price them even higher because they are better? They can’t do that anymore. They cannot use the current X pricing as a benchmark any more. I hope the fever will cool down within Apple. I bet the pricing this fall will come down to more reasonable level.
Cook continues to utter, as if its his sour grape, that the sales of the X iPhone X “surpassed our expectations” or “off the chart” etc, when the reality was not so. There is a strong sign that consumers are finally realizing the apparent overpricing, and becoming more levelheaded. Mr. Cook, pick up the sign and come back to more sustainable strategy before it’s too late. Remember, Apple is now even more dependent on the iPhone sales ever before with its 70+% revenue proportion. Crazy…
No conspiracy, no doom and gloom, just trying to be logical. And I love Apple and want them continuing to succeed and make reasonable and sustainable money.
The point is: “analysts” are never pleased. Apple posted recorded quarters to be punished by “disappointing “ results. IPhone X was introduced shortly after the 8, was highest priced iPhone ever, had “notchgate” and is still the best selling model every week since intro. Somehow you can parce this into negativity. I believe it is a bold sucessful design and consumers are voting with their wallets. As a longtime shareholder and Apple consumer, I’m pleased.
Thanks, Tim. We knew you had it in you.
My gut says after killing a ton of options tomorrow… it will bounce back next week
They should not report on Thursdays ..
One day before option experations… imo
It seens it wants to settle at max pain of 170 for tomorrow… lol. What a racket .
Given how key Services are going to be that active install base of 1.3 billion devices is huge news. That’s a crazy big number.
Apple meets or exceeds its guidance usually.
the problem is that Analysts have their own (often fantasy) guesswork.
the next March (fiscal second) quarter analysts estimates were way too high originally and in the last week it kept coming down to around 60 b coinciding with what Apple just announced.
Problem is people equate ‘missing’ analysts original fantasy March numbers with Apple missing it’s own guidance (which are two different things).
—–
that said I believe Apple could have performed better if they had done a few things:
example:
Mac sales are down (although — as usual — still making more than iPad ) . I believe if they had run some Mac MARKETING — zero ads through Christmas like zero marketing for years, and done some upgrading (where the 32 GB Macbook Pro and the promised Mini ?) they would have a gain instead of drop..
and other stuff like missing the HomePod launch for Christmas.
note the numbers have to be adjusted for the shorter 13 vs 14 week year ago quarter.
Yup.. and taking that into consideration.. Apple blowes past all street analcyst expectation..not just their own guidance.
Their equivalent growth is 21%. Yoy… not 13%
Sorry.. my prasing was bit confusing..
Clarification.:
Their eqivalant growth would have been 21% rather than 13% had we had 14 week in last q.
Apple could REALLY have performed better (and let us all be clear on what this means, Apple could have had a BIGGER WORLD’S BIGGEST PROFIT EVER) if they had just picked up loose change off the street. Anything you add to whatever’s already the BIGGEST makes it… BIGGER!
Accounts Receivable 😱 Up around $5B from last quarter and around $10B from last year. Last year AR went down from Q3 to Q4. Are vendors not paying Apple for unsold iPhones?
Way to go Apple, love the take MDN.
If they had the 14 weeks like last year they would have sold more than 80million iPhones…. another week makes a big difference.. They sold 6 Million per week.. Yikes
https://www.thewrap.com/iphone-sales-lower-than-expected/
“Apple’s much-hyped slate of new smartphones — including the top-line $999 iPhone X — couldn’t propel the world’s biggest company to the “supercycle” wave of phone upgrades Wall Street was banking on. The consumer tech giant sold a whopping 77 million iPhones last quarter, Apple announced on Thursday, but still came in well below analyst estimates of roughly 80 million devices.
That figure also came up short of Apple’s record 78.3 million iPhones sold in a single quarter, which the company hit during its last holiday quarter.”
Last holiday quarter was a week longer so if they had 14 weeks they would have sold over 80 Million phones, if we take last year and adjust to 13 weeks – we get… only 72.7 Million phones so I would say they are up quite a bit from last year.. Do the math not the meth..
Not if you add one more week to the comparison..
14 weeks agains 14 weeks.. not 14 weeks against 13weeks of this year quarter .
That differance alone raise their growth number from 13%yoy to 21% yoy.
A bit if clarification :
That differance alone would have raised their growth number from 13%yoy to 21% yoy.. had we had 14 weeks in last q . ( like last year’s 14 week q… to which yoy numbers are compared)
Which is just amazing.. and analcyts seem to be blind to this significant difference..
The point people are missing is, the iPhone had only a 13 week period (2017) vs a 14 week (2016). Another week would’ve added another 5,923,076 iPhone sales to the 77,316,000 Apple reported today.
And then comes the Apple and ups their ASP to $796. xD
This is while EVERYBODY elses ASP is going DOWN!
All the other CEOs/companies are jealous to Tim Cook. He can do it, but they can´t.