For a change, Apple reported well received earnings for their financial Q2 this afternoon, easily beating analyst estimates for revenue, earnings per share, gross margins, and iPhone sales, while falling short on iPad sales, and wait for it…iPod sales. Likely adding to the after hours trading fervor (up almost 8% on heavy volume) was the announcement that Apple would be splitting its stock 7-for-1. Also announced, Apple is adding an additional $30B to their share repurchase authorization (from $60B to $90B), and an 8% dividend increase to $3.29 per share, payable May 15.
- Revenue: $45.6M vs. $43.6M Q2 2013. Analysts estimated $43.6M
- Gross Margins: $39.3M vs Analysts estimate of $37.7M.
- iPhone: 43.7M vs 37.4M Q2 2013 (+17%). Analysts estimated 37.3M.
- iPad: 16.4M vs 19.5M Q2 2013 (-16%). Analysts estimated 19.7M.
- Mac: 4.1M vs 4.0M Q2 2013 (+0.5%). Analysts estimated 4.03M.
- iPod: 2.8M vs 5.6M Q2 2013 (-51%). Analysts estimated 2.99M.
Notable comments from CEO Tim Cook:
Working on new products and services.
800M iTunes accounts, most with credit cards attached.
Apple's current iPhone lineup (iPhone 5s, 5c, and 4s) have all outsold their predecessors.
We care about every detail and it takes us a bit longer to do that. That's always been the case.
It means more to us to get it right than to be first.
62% of iPhone 5s buyers in China switched from Android while 60% of 5c buyers switched from Android.
We currently feel comfortable in expanding the number of things we're working on. So we've been doing that in the background and we're not ready yet to pull the string on the curtain. But we've got some great things there that we're working on that I'm very, very proud of and very, very excited about.
We’ve sold, now, about 20 million of the Apple TV, and so we’ve got a pretty large installed base there. And I’m feeling quite good about that business and where it can go.