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:
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MacDailyNews presents live notes from Apple’s Q118 conference call – February 1, 2018
