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Earnings: Apple Blows Away Expectations; Sells A Record Number of Macs, iPhones

Fighting questions as to whether Apple (NSDQ: AAPL) would be able to continue to beat analyst expectations, the Cupertino, Calif.-based reported stellar results for its fiscal fourth-quarter today that blew even the loftiest of forecasts.

Apple has a history of being conservative and then easily beating both internal and external estimates. Today was no different. Apple maintained its two-year record of exceeding expectations by posting revenues of $9.87 billion and a net quarterly profit of $1.67 billion, or $1.82 per diluted share. Even the most bullish of analysts anticipated profits of around $1.60 a share. UPDATE: Apple was rewarded handsomely by investors today for doing so. In after-hours trading, the company’s stock jumped 6 percent or $11.45 a share to more than $200 a share.

In a statement, CEO Steve Jobs said they sold a record number of Macs and iPhones during the quarter. Apple sold 3.05 million Macs; 10.2 million iPods and 7.4 million iPhones. In the year-ago period, Apple sold 6.9 million iPhones and Wall Street was expecting sales of about 7.5 million, Reuters reports. In September, Apple reported sales of more than 30 million iPhones to date, which some analysts say translated into about 3.5 million so far for the quarter.

4Q 2009 4Q 2008 Analysts Estimates For 2009
EPS $1.82 $1.26 $1.42
Net Income $1.67 billion $1.14 billion N/A
Revenue $9.87 billion $7.9 billion $9.2 billion

Release | Webcast.

The company’s quarter results are even more impressive when you take into account that it recognizes revenue and cost of goods sold for iPhone and Apple TV over their estimated economic lives, rather than during the same quarter. When Apple eliminates the impact of subscription accounting, it said revenues increase to $12.25 billion and net come soars to $2.85 billion.

Looking ahead to the first fiscal quarter of 2010, the company expects to do well during the holiday period. Revenues are expected to range between $11.3 billion and $11.6 billion and earnings per share will range between $1.70 to $1.78.

One Response to “Earnings: Apple Blows Away Expectations; Sells A Record Number of Macs, iPhones”

  1. Personally, the most impressive part of the earnings was the Mac side of the story, where growth is outpacing the rest of the market handily 17% to 2%.

    Plus, when you understand how much of that growth is coming from Portables, you understand why the Tablet is inevitable, something that I blogged about in:

    The Right Stuff: Analysis of Apple’s Q4 Earnings Call

    Check it out, if interested.