Live blog: Apple’s Q4 2014 earnings call

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As we mentioned last month, Apple is scheduled to host its quarterly conference call today to discuss its earnings report from the fourth quarter of its fiscal year: this includes 39 million iPhones, 12.3 million iPads, 2.6 million iPods, and 5.5 million Macs. Apple already reported today that it earned $42.1 billion in revenue during its Q4 period.

This will quarterly conference call with analysts and investors will include the opening weekend of iPhone 6 and iPhone 6 Plus sales which included a record 10 million sales including 4 million units sold during the first 24 hours of pre-orders. It will also be the first call since Apple previewed the Apple Watch to the public, shipped iOS 8 and OS X Yosemite, and introduced new iPads and a Retina 5K iMac, although sales for those devices are not included in the previous quarter. Apple CEO Tim Cook and Apple CFO Luca Maestri will also likely mention Apple Pay, the company’s mobile payment service which launched for iPhone 6 and iPhone 6 Plus users earlier today.

Investors and analysts will have an opportunity to ask Tim Cook and company questions during the earnings call and we’ll be listening to bring you coverage starting at 5pm EST/ 2pm PST. Read more

Apple announces Q4 2014 revenue of $42.1b: 39m iPhones, 12.3m iPads, 5.5m Macs

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Apple today announced its Q4 2014 earnings results reporting that the company earned $42.1 billion in revenue and $8.5 billion in profit during the quarter.

“Apple® today announced financial results for its fiscal 2014 fourth quarter ended September 27, 2014. The Company posted quarterly revenue of $42.1 billion and quarterly net profit of $8.5 billion, or $1.42 per diluted share. These results compare to revenue of $37.5 billion and net profit of $7.5 billion, or $1.18 per diluted share, in the year-ago quarter. Gross margin was 38 percent compared to 37 percent in the year-ago quarter. International sales accounted for 60 percent of the quarter’s revenue.”

In addition to reporting its earnings, Apple has disclosed sales numbers for its main revenue generators. The company sold:

  • iPhone: 39.272 million, up 16.2%
  • iPad: 12.316 million, down 12.5%
  • Mac: 5.52 million, up 20.7%
  • iPod: 2.62 million, down 25.1%
  • iTunes: $4.208 billion, up 8.2%
  • Accessories: $1.486 billion, up 12.7%

Totals:

  • Revenue: $42.123 billion, up 12.4%
  • EPS: $1.42 per share, up 20.3%

Apple CEO Tim Cook had the following to say regarding the results:

“Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus,” said Tim Cook, Apple’s CEO. “With amazing innovations in our new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite, we are heading into the holidays with Apple’s strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015.”

Apple CFO Luca Maestri added this:

“Our strong business performance drove EPS growth of 20 percent and a record $13.3 billion in cash flow from operations in the September quarter,” said Luca Maestri, Apple’s CFO. “We continued to execute aggressively against our capital return program, spending over $20 billion in the quarter and bringing cumulative returns to $94 billion.”

Apple’s stock price, which closed at %99.76 (up 2.14% today following the launch of Apple Pay) is up during after-hours trading as well crossing the $100 mark at certain points.

During Apple’s fourth quarter, the company shipped the iPhone 6 and iPhone 6 Plus to customers and closed on its deal to acquire Beats Electronics and Beats Music. During the previous earnings call with investors and analysts, Apple CFO Luca Maestri shared that the company will begin separately reporting earnings from Beats in 2015.

These numbers compare to last quarter’s results of $37.4 billion in revenue and sales of 35.2 million iPhones, 13.2 million iPads, and 4.4 million Macs. You can also compare today’s numbers to analyst expectations from before the announcement. Apple is holding a conference call today at 2 PM Pacific/5 PM Eastern time to discuss the quarter’s earnings, which we will be covering live. Cook and Maestri will likely share prepared remarks and then take a series of questions at the end from financial analysts.

For Q1 2015 Apple is providing guidance between $63.5 billion and $66.5 billion. The full Q4 earnings results release is below:

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On average, analysts expect iPad sales to be flat, but no consensus

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Someone once said that if you put three analysts in a room and ask them a question, you’ll get four different opinions. This certainly appears to be the case today, with Fortune finding no more consensus on iPad sales than it did on iPhone numbers.

Asked to predict how many iPad sales Apple will announce in next week’s Q3 earnings announcement, the overall average suggested year-on-year sales would be flat at 14.35M. However, no consensus view emerged …  Read more

Analysts respond to AAPL earnings, rating the stock a strong buy

Photo: USA Today

Photo: USA Today

Early overnight reports collated by Fortune unsurprisingly show analysts pleased by the higher-than-expected iPhone numbers, with five out of five rating the stock a buy, their price targets ranging from $75 to $252 above yesterday’s closing value. Apple reported iPhone sales of 43.7B against expectations of 38B, and revenue of $45.6B against the consensus estimate of $43.5B.

  • Katy Huberty, Morgen Stanley: Price target $630

  • Gene Munster, Piper Jaffray: Price target $640

  • Brian Marshall, ISI: Price target $600

  • Brian White, Cantor Fitzgerald: Price target $777

  • Peter Misek, Jefferies: Price target $625  …

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AAPL stock drops 8 percent on iPhone numbers and flat guidance

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Despite Apple returning to growth for the first time in a year, AAPL stock opened almost 8 percent down, as iPhone sales fell below analyst predictions and Apple’s mid-point guidance on Q2 earnings forecast was for zero growth.

Analysts had predicted 55.3M iPhone sales, while Apple reported sales of 51M. Analysts were also disappointed in Apple’s guidance for Q2 of $42-44B, as the mid-point of $43B would not show any growth over the same quarter last year …  Read more

AAPL returns to growth, predict analysts, as we await quarterly earnings call

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When Apple reports its quarterly earnings later today, the news will be good, according to the consensus view of 47 Apple analysts compiled by Fortune.

Analysts are expecting the company to report earnings of $58.1B for the final quarter of last year (Apple’s fiscal quarter 1), representing 4 percent earnings growth over the same quarter last year. This would be right at the top end of Apple’s guidance of $55-58B, and the first time in a year that Apple would have reported year-on-year growth …  Read more

Apple reports record quarter: $28.27 billion in revenue, 4.89 million Macs, 17.07 million iPhones, 11.12 million iPads

Apple has just posted their FYQ4 earnings prior to their call at 5 PM. Apple is reporting a quarterly revenue of $28.27 billion and quarterly net profit of $6.62 billion — both records for the company.  Apparently, investors don’t like records.  The stock is down over 5% or 22 points in after hours trading.

Apple also announced that they sold in Q4:

  • 4.89 million Macs
  • 17.07 million iPhones
  • 11.12 million iPads
  • (only) 6.62 million iPods

…Records for both Macs and iPads. The only decline across the board was 6.62 million iPods for Q4, a 27 percent unit decline from Q3 2010.

Apple is now over $100 billion in revenue for fiscal 2011. International sales contributed to 63% of this quarter’s earnings.  Tim Cook and Peter Oppenheimer’s thoughts?

“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s CEO. “Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”

“We are extremely pleased with our record September quarter revenue and earnings and with cash generation of $5.4 billion during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first fiscal quarter of 2012, which will span 14 weeks rather than 13, we expect revenue of about $37 billion and we expect diluted earnings per share of about $9.30.”

Press release after the break:

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