DOW JONES NEWSWIRES
Apple Inc.'s (AAPL) fiscal fourth-quarter profit jumped 47% as
the company sold more Macintosh computers and iPhones than in any
previous quarter, which helped drive revenue.
Shares were up 7.2% to $203.43 in after-hours trading, as the
company's latest results easily beat analysts' expectations. The
stock has more than doubled this year.
The maker of computers and electronic devices, which is
notorious for giving conservative guidance, said it expects fiscal
first-quarter earnings of $1.70 to $1.78 a share on revenue of
$11.3 billion to $11.6 billion. Analysts polled by Thomson Reuters
expected $1.91 and $11.45 billion, respectively.
The lower earnings view might be some concern for analysts,
which are focusing on Apple's outlook for the end-of-the-year
holiday shopping season.
Apple has defied the recession with its slick laptops and smart
phones. There have been some concerns over margins - which are
expected to be pressured as the company continues to lower prices,
although the company has been successful in locking in lower prices
components like screens and memory chips.
For the quarter ended Sept. 26, Apple reported earnings of $1.67
billion, or $1.82 a share, up from $1.14 billion, or $1.26 a share,
a year earlier. Revenue jumped 25% to $9.87 billion, with 54% of
sales in the U.S.
In July, Apple said it expected earnings of $1.18 to $1.23 on
revenue of $8.7 billion to $8.9 billion. Wall Street's latest
estimates were $1.42 a share on revenue of $9.2 billion.
In the latest quarter, gross margin improved to 36.6% from
34.7%.
Meanwhile, if the company wasn't required to defer revenue from
iPhone handsets and Apple TV units shipped in current and prior
periods, it would have reported earnings of $3.12, up from $2.69 a
year earlier. Revenue would have increased 4.9% to $12.25
billion.
Apple sold 3.05 million Macintosh computers in the latest
quarter, up 17% from a year earlier. The company sold 10.2 million
iPod media players, down 8%.
Apple has dropped prices across its iPod lineup as the company
tries to revive slowing sales. And while the iPod is still the
dominant digital music player, it has been eclipsed by the
fast-selling iPhone, which reported sales of 7.4 million units,
growing 7% from year-ago levels.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com