Apple Releases Its Q3 Results And It Looks Good
Apple released its third quarterly results and it looks good for the company. The Cupertino based tech giant saw quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion, or $1.28 per diluted share. This growth was mostly powered by iPads, Mac sales and services. The Earning Per Share (EPS) has increased grown by 20 percent. The company saw an increase of about $2 billion in revenue over last year’s $35.3 billion with net profit of $6.9 billion.
The Gross margin also increased to 39.4 percent compared to 36.9 percent from last year. International sales accounted for 59% of this quarter’s revenue.
These favorable figures lead the board of directors to declare a cash dividend of $0.47 per share of Apple’s common stock.
Apple’s CEO Tim Cook sounded rather elated when he said “Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters. We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.”
Apple’s target for the fiscal fourth quarter of 2014 are:
• revenue between $37 billion and $40 billion
• gross margin between 37 percent and 38 percent
• operating expenses between $4.75 billion and $4.85 billion
• other income/(expense) of $250 million
• tax rate of 26.1 percent
Considering the hype generated by Apple’s phenomenal show this year at the WWDC and the regular product leaks, these targets are definitely realizable. With the release of the new generation OSX and iOS 8 later this year and Apple’s enterprise tie-up with IBM, it seems like this will be the year of the Apple.