Apple Dips on Q4 Results
Shares of Apple (NASDAQ:AAPL) traded to both the upside, and the downside, on Tuesday morning following the company’s highly anticipated fourth quarter report.
The company was able to report revenue, earnings per share, and iPhone sales are ahead of expectations. However, iPad sales were a little shy of expected, but not a major concern. Following the report in the after hours session on Monday the stock initially plummeted after weaker than expected margin guidance. Apple guided to 36.5%-37.5%, suggesting a flat margin despite a new iPhone. Apple’s margin will be affected by a number of variables. The new iPads cost more to make, foreign exchange issues make waves, and most importantly, a $900 million increase in deferred revenue.
Below is a quick summary of some of the key numbers investors, traders, and analysts are looking into as we speak:
● Revenue: $37.5 billion versus expectations of $36.82 billion
● Earning Per Share: $8.26 versus expectations of $7.92
● iPhone: 33.8 million units versus expectations of 31 million units
● iPad: 14.1 million units versus expectations of 14.5 million units
● Mac: 4.6 million units versus expectations of 4.6 million units
● Gross Margin: 37% versus expectations of 37%
Going into the holiday season the street will be watching closely for the most recent sales statistics and margin figures surrounding the company’s full array of products. Sales of the company’s new iPad could prove to be a deciding factor come first quarter earnings down the road. It appears the company has been able to successfully manage its gross margins despite rising production costs and lowered product pricing. Hopefully for investors, Apple can sustain these numbers and remove the fears of sub 30% margins from investor minds. Shares of the company are down by $4 to $525 at the time of this writing. Shares of Apple are lower by just over 1% on the year.
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