Apple Q3 Up But Below Wall Street Estimates, Again

24 Jul

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Apple posted third quarter revenue of $35.0 billion and quarterly net profit of $8.8 billion, or $9.32 per diluted share. These results compare to revenue of $28.6 billion and net profit of $7.3 billion, or $7.79 per diluted share, in the year-ago quarter. Gross margin was 42.8 percent compared to 41.7 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

Shares of the world’s most valuable technology company shed more than 5 percent of their value after Apple – which beats Wall Street expectations with near regularity – reported its second quarterly miss on results in less than a year.

The stock slid to $570.81 in late trade after closing at $600.92 on the Nasdaq.

The disappointing numbers highlight how the Apple brand is becoming less resistant to the economic and product cycles that have plagued rivals.

Apple, which Tim Cook has led since last August, divided the blame for the shortfall between muted consumer purchases in Western European countries and the pullback in demand as consumers wait for a new iPhone model that many expect will be launched in September or October.

The Company sold 26.0 million iPhones in the quarter, representing 28 percent unit growth over the year-ago quarter. Apple sold 17.0 million iPads during the quarter, an 84 percent unit increase over the year-ago quarter. The Company sold 4.0 million Macs during the quarter, a two percent unit increase over the year-ago quarter. Apple sold 6.8 million iPods, a 10 percent unit decline from the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $2.65 per share of the Company’s common stock. The dividend is payable on August 16, 2012, to stockholders of record as of the close of business on August 13, 2012.

“We’re thrilled with record sales of 17 million iPads in the June quarter,” said Tim Cook, Apple’s CEO. “We’ve also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we’ve got in the pipeline.”

“We’re continuing to invest in the growth of our business and are pleased to be declaring a dividend of $2.65 per share today,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65.”

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