As expected, Apple (NSDQ: AAPL) easily beat its own softball forecast, and even some more rigorous analysts’ expectations, during the third quarter — mainly to do with strong Mac computer and iPhone sales. The company sold 2.6 million Macs, jumping 4 percent from the year-ago period; 10.2 million iPods, falling seven percent; and 5.2 million iPhones, skyrocketing 626 percent.
The quarter is typically the slowest business period for the company, which benefits over the next couple months as people buy new equipment before heading back to school, but even Apple’s own estimates were being called too conservative. Apple was forecasting a profit up to $1 a share on revenue of up to $7.9 billion. Of course, results were more easily supported by an updated Mac product line and the brand new iPhone 3GS, which sold one million handsets over the first weekend alone. (More on how Apple can’t keep up with iPhone demand here.)
| 3Q 2009 | 3Q 2008 | Estimates | |
|---|---|---|---|
| EPS | $1.35 | $1.19 | $1.16 |
| Net Income | $1.23B | $1.07B | N/A |
| Revenue | $8.34B | $7.5B | $8.16B |
Still, analysts were unsure how the company would perform in what can be called an unstable economy at best. No one new exactly how much of a draw the new iPhone 3GS would be, considering it was only a minor upgrade (adding faster speeds, video-recording and a built-in compass). However, Apple also slashed prices on the 3G iPhone to $99, which must have helped.
Canaccord Adams analyst Peter Misek expected Apple to exceed forecasts because of strong iPhone shipments, MarketWatch reported. Apple fell shy of Misek’s 5.5 million estimate. However, only once in the last year did Apple sell more iPhones. In Q4 2008, it sold 6.9 million handsets. In a release, Apple’s CEO Steve Jobs, said: “We’re making our most innovative products ever and our customers are responding. We’re thrilled to have sold over 5.2 million iPhones during the quarter and users have downloaded more than 1.5 billion applications from our App Store in its first year.”
Adjusted Earnings: One of the most important metrics to look at for Apple is not just its top revenue line, but also adjusted GAAP sales because it eliminates the impact of subscription accounting, which they use for the iPhone and Apple TV (meaning the revenues are spread out over time). Under non-GAAP revenues for the quarter, Apple said sales totaled $9.74 billion and net income was $1.94 billion.
Forecast: In Q4, the company expects revenues in the range of about $8.7 billion to $8.9 billion and diluted earnings per share in the range of about $1.18 to $1.23.:
Earnings release | Webcast (5 p.m. ET)

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