Thursday, October 25, 2012

Apple fiscal Q4 2012 earnings miss; December quarter estimates disappoint

When Apple CEO Tim Cook announced on Tuesday that the company had sold its 100 millionth iPad two weeks prior, consumers saw it as good news, but analysts saw it as bad news. The reason: if that were indeed the case, then the company would not have made the numbers analysts had expected.

Apple reported its results for its fiscal fourth quarter (calendar year third quarter) on Thurday.

Apple reported net income of $8.2 billion, or $8.67 per share, compared with net income of $6.6 billion, or $7.05 per share, year over year. Revenue rose $36 billion, up 27 percent from 2011.

Revenue met analysts estimates ($35.8 billion), but earnings missed analysts' estimates, which were earnings of $8.75 per share, according to consensus estimates from Thomson Reuters.

Apple said it shipped 14 million iPads and 26.9 million iPhones during the quarter; those figures missed analysts' iPad estimates (17 million), but surpassed iPhone expectations (26 million).

Apple sold 4.9 million Macs during the quarter, up 1 percent year-over-year. iPod sales continued on their steady downward trend, as more people opt for combined deviced like the iphone; they were at 5.2 million, down 19 percent.

For its first quarter fiscal year 2013, ending in December, Apple projected earnings per share of $11.75 with revenue of $52 billion. Analysts had been expecting earnings of $15.41 per share on revenue of $55 billion for the period.

Much of the downturn in Apple stock prices seem to have already been factored in during a recent drop in its price. The stock is down to $606.86‎ (-$2.68‎, -0.44 percent) in after-hours trading.

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