Peter Kafka

Recent Posts by Peter Kafka

Apple Beats Earnings Estimates, but Low on Guidance, iPad Sales

First hit from Apple earnings: EPS of $4.64 and revenues of $20.34 billion. The consensus was $4.05 and $18.8 billion.

The Street won’t like guidance, though: Apple is predicting Q1 EPS of $4.80, below the $5.04 analysts were looking for. They will also sputter a bit on this number: Apple sold 4.19 million iPads, and the consensus was 4.7 million.

And then on the other hand, Apple sold 14.1 million iPhones last quarter, well above both the official 11 million consensus and the 13 million “what we’re really looking for” number.

Ominous/hopeful Steve Jobs quote: “We still have a few surprises left for the remainder of this calendar year.”

UPDATE: Live earnings call coverage here.

Other numbers you care about:

Macs sold: 3.89 million.

iPods sold: 9.05 million.

Press release text:

Apple Reports Fourth Quarter Results
Record Mac, iPhone and iPad Sales
Highest Revenue and Earnings Ever

CUPERTINO, California—October 18, 2010—Apple® today announced financial results for its fiscal 2010 fourth quarter ended September 25, 2010. The Company posted record revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per diluted share. These results compare to revenue of $12.21 billion and net quarterly profit of $2.53 billion, or $2.77 per diluted share, in the year-ago quarter. Gross margin was 36.9 percent compared to 41.8 percent in the year-ago quarter. International sales accounted for 57 percent of the quarter’s revenue.
Apple sold 3.89 million Macs during the quarter, a 27 percent unit increase over the year-ago quarter. The Company sold 14.1 million iPhones in the quarter, representing 91 percent unit growth over the year-ago quarter. Apple sold 9.05 million iPods during the quarter, representing an 11 percent unit decline from the year-ago quarter. The Company also sold 4.19 million iPads during the quarter.
“We are blown away to report over $20 billion in revenue and over $4 billion in after-tax earnings—both all-time records for Apple,” said Steve Jobs, Apple’s CEO. “iPhone sales of 14.1 million were up 91 percent year-over-year, handily beating the 12.1 million phones RIM sold in their most recent quarter. We still have a few surprises left for the remainder of this calendar year.”
“We’re thrilled with the performance and strength of our business, generating almost $5.7 billion in cash flow from operations during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first fiscal quarter of 2011, we expect revenue of about $23 billion and we expect diluted earnings per share of about $4.80.”

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik