Apple (AAPL) Stock Rises on Third Quarter Earnings
Shares of Apple, Inc. (AAPL) were up +16.51 or +3.94 percent to $435.50 per share in pre-market trading on Wednesday, after the company announced positive fiscal third quarter earnings late Tuesday afternoon. The stock traded as high as $442 per share after the earnings announcement. Apple stock had closed down -7.32 or -1.72 percent in Tuesday's regular trading session. For the company's fiscal third quarter ending on June 29th, Apple posted a net profit of $6.9 billion, or $7.47 per diluted share on $35.3 billion in revenue.
The results compare to a profit of $9.32 billion on revenue of $8.8 billion in the same period one year ago. Daily Chart
Cupertino, California based Apple Inc., formerly known as Apple Computer Inc. is the second largest information technology company in the world by revenue, and the world's third largest manufacturer of mobile phones after Samsung and Nokia (NOK
). The company dropped "computer" from their name in early 2007 reflecting the company's shift towards consumer electronics. Gross margins fell to 36.9 percent compared to 42.8 percent in last year's third quarter, in part due to a four percent reduction in priced of the new iPhone. Nevertheless, Apple sold a record 31.2 million iPhones in the third quarter compared to 26 million in the same quarter one year ago. In addition, Apple sold 14.6 million iPads in the quarter, considerably less than the 17 million it sold in 2012's third quarter. In the computer field, Apple sold 3.8 million Macs, versus 4 million in the year-ago quarter. International sales made up the lion's share of revenue with 57 percent. In the company's press release announcing earnings, Chief Financial Officer, Peter Oppenheimer stated that, "We generated $7.8 billion in cash flow from operations during the quarter and are pleased to have returned $18.8 billion in cash to shareholders through dividends and share repurchases." Apple's Board of Directors declared a $3.05 per share cash dividend of Apple common stock. The dividend will be paid on August 15, 2013, to shareholders of record as of the close of business on August 12, 2013. Tim Cook, Apple's Chief Executive Officer stated, "We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services," he added, "We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014." Apple also provided guidance for the company's fiscal fourth quarter, which included revenue between $34 billion and $37 billion, gross margins between 36 and 37 percent on operating expenses of $3.9 to $3.95 billion. The better than expected results for the third quarter - the analyst consensus for earnings was $7.30 on sales of $35 billion - have made investors more confident that competition in the smartphone market has not seriously impacted Apple. After trading over $700 per share last September, Apple stock is at the low end of its yearly range. With a current price earnings ratio of 10 and EPS of $41.90, in addition to the improved earnings and guidance, the stock may have already seen an intermediate low. Other News About AAPL
) Analysts speculate the company may not be able to meet expectations with its iPhone 5S. Apple Price Target Raised to $530 From $515 at Goldman
Goldman Sachs raises its target price in light of Q3 earnings. Other Stocks in the News
) Wall Street optimistic on Facebook's earnings. Ford Posts Better-Than-Expected Second-Quarter Profit as Trucks Shine
Automaker beats the street earning 45 cents per share in the second quarter. Copyright 2013 by InvestorGuide.com, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA InvestorGuide.com, Inc.) or its employees responsible.
Published on Jul 24, 2013
By Jay Hawk