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Apple Crushes Q3 2014 Earnings, Posts $8.5 Billlion Profit

Apple Net Neutrality Apple's headquarters in Cupertino, California

Apple (NASDAQ:AAPL) reported its earnings Tuesday for the last quarter of the company’s fiscal year revealing it had generated $42.1 billion in revenue and $8.5 billion in profit.

This translates to an earnings per share of $1.42 per share, which is well above what Wall Street’s consensus was of around $1.31 as well as revenue of about $40 billion. This means that Apple has once again beaten Wall Street’s lofty expectations, partially helped by the strongest iPhone launch in the company’s history with the launch of the iPhone 6 and iPhone 6 Plus. This represents a continuation of the company’s profitability even though Apple as a company has significantly changed internally. Apple was able to ship 39 million iPhones, roughly in line with what many analysts were expecting, but still above the average expected 37.5 million consensus. Apple also saw huge growth in the Mac sales thanks to the back to school season and they have now seen market share increase to some of the highest levels in over a decade.

Apple reported that its gross margin went up 1 point in the quarter, to 38% up from 37% in the same quarter a year ago, representing the increase in profitability. Additionally, Apple only reported $37 billion in revenue in the same quarter a year ago, showing that Apple has continued to drive the company upward year over year. Apple also stated that 60% of the revenue generated in the third quarter came from international sales, which also means that a lot of the cash flow generated from operations, $13.3 billion worth, will very likely stay abroad. Apple’s board also announced a $0.47 dividend for November 13th this year, and will be issued to holders of the stock on November 10th this year.

Apple Earnings

Apple Earnings

Apple also guided their fiscal first quarter of 2015, calendar Q4 2014, to a record revenue to $63.5 billion and 66.5 billion, they also expect gross margin to be somewhere between 37.5 and 38.5 percent.

Apple’s current share price is at $99.76 but it is already trading higher in after hours trading, once again breaking the $100 barrier up over 1% to $101.26.