Apple Burns Estimates to a Crisp, Blows Out Earnings

$13.87 per share.  That’s what Apple (NASDAQ:AAPL) earned in the 1st quarter of 2012.  That’s a net profit of $13.06 billion dollars.  That’s more than the entire 2011 Foreign Direct Investment in the entire country of Vietnam.  That’s more than Newt Gingrich’s fast food bill. Gross margins were an equally obscene 44.7% with U.S. sales growth up 90% while European growth was only up 55%.  Must be a recession in Europe or something.

Their results made the analysts on Wall St. look like the shoeshine boys as their estimates were only for the electronics juggernaut to earn only $10.16 per share.

They didn’t just beat the street by a penny, they beat it with penny-sized ugly stick 371 times.  Somewhere Steve Jobs is smiling.  In the 4th quarter they sold:

  • 37.04 million iPhones
  • 15.43 million iPads

This report comes on the heels of a disappointing one from mobile computing rival Google (NASDAQ:GOOG) whose earnings were off due to increased development costs to implement their holistic mobile/social media strategy.

The good news is that this is likely not the last big huzzah for Apple before it all turns against them. The company is well positioned with its current product line as it continues to roll out the iPhone 4 in China, the results of which will be reported in March.

The company gave guidance that it expects 2nd Quarter revenue to be $32.5 billion with earnings coming in around $8.50 per share.

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Tom Luongo

About Tom Luongo

Tom Luongo is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.

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