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Apple Dominates 3Q 2011 Earnings by Posting Record Revenue and Profit

Today, Apple [NASDAQ:AAPL] reported their FY 3Q 2011 figures (calendar 2Q 2011). Many expected Apple to improve over their previous quarter?s results considering the demand for the iPhone and iPad. Apple highlighted their revenue and profit figures by stating that iPhone sales grew 142% and iPad sales grew 183% over the same period a year ago.

Apple reported record revenue of $28.57B with $7.31B in net profit, resulting in an EPS of $7.79. Furthermore, they reported a gross margin of 41.7% compared to 39.1% in the same quarter a year ago. This shows that not only is Apple increasing their amount of sales, but they?re also increasing how much they?re making on average per sale which reflects into more overall profitability. Thanks to the global launch of the iPhone 4 and the introduction of the much awaited CDMA variants (Verizon iPhone), Apple managed to ship just over 20 Million iPhones accompanied by over 9 Million iPads.

Sequentially, Apple saw the most growth in the US with 22% growth in shipped units over the previous quarter. This is in contrast to other regions where they either shipped fewer units or only grew by single digits. Alas, these figures did not reflect poorly upon Apple?s revenue as they still managed to increase revenue in regions where they had less growth than in the US. In Asia, Apple only saw 4% growth in ship units, yet saw a 34% increase in revenue. Apple has poised itself to capture the APAC market and is likely only to continue this trend. Comparing Apple?s figures to the same quarter a year ago in APAC, we can see that Apple has increased their shipped units 57% and revenue by 247%. This can easily be marked by Apple?s introduction into the Chinese market and popularity with wealthy Chinese in regards to iPads and iPhones.

Apple CEO Steve Jobs stated, ?We?re thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent.? This was followed by their CFO stating that they expect to attain revenue of $25B with an EPS of $5.50. This signals to investors that Apple does not expect to sell as much in the following quarter and that their profitability may take a hit as well, but these are likely very conservative estimates that are likely to beat the current quarter?s earnings figures. Considering Apple?s momentum at the given moment, we don?t have any reason to question that they could break $30B of revenue in the next quarter. This could partially be fueled by the release of Mac OSX Lion tomorrow which should drive Apple’s software sales and could also help their portable and desktop sales as well. The only thing that could possibly keep them from attaining such figures are the anticipated release of iOS and iCloud in the fall along with a possible new version of the iPhone. Those will likely make 1Q 2012 (calendar 4Q 2011) more attractive to consumers to purchase devices than say 4Q 2011 (calendar 3Q 2011).

At the current moment, the markets are closed and apple closed up $3.05(0.82%) to 376.85. In after hours trading, though, AAPL is up $20.37 (5.41%) at $397.22.

Summary of Earnings Worksheet @ Apple

  • Hi there.
    Shikarnenko here. I liked it!
    Keep up the good work! 🙂