Apple (AAPL) Rises After Hours on Higher than Expected Holiday Quarter Results

Shares of Cupertino, California, based Apple, Inc. (AAPL) rose in after-hours trading on Tuesday, though the stock closed somewhat lower against the backdrop of a sharp sell-off in stocks overall. Apple's stock closed down $3.96, falling 3.50% to close at $109.14, on volume of 95,568,749 shares. However, just minutes after the market closed, the company disclosed that results for it's fiscal first quarter, ended December 27, exceeded analysts estimates across the board.

The stock was trading up by more than $6.00 per share in after-hours trading.

Founded in 1976, Apple, Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. Its products and services include iPhone, iPad, iPod, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and accessories, service and support offerings. For the fiscal year ended September 27, 2014, the company had net income of $39.51 billion on revenues of $182.35 billion. The company's stock trades on the NASDAQ.

The company reported that net income for it's 2015 fiscal first quarter, ended December 27, increased by 38% to a record high. The increase in profits was driven by higher than expected demand for it's latest iPhones. The company rolled out its iPhone 6 and iPhone 6 Plus last September, helping to boost sales for the company's first quarter.

Net income reached $18 billion for the first quarter, compared to $13.1 billion for the first quarter of fiscal 2014. Earnings per share were up to $3.06 per share, versus $2.07 per share a year earlier, representing an increase of 48%. This also exceeded the consensus estimate of $2.60 per share by a comfortable margin.

Total revenue was up by 30%, increasing to $74.6 billion for the quarter, from $57.6 billion from the same period a year ago. Analysts had been expecting revenues for the quarter to come in at $67.7 billion, which the company easily bested.

Higher sales were driven by record level sales of the company's popular iPhone products. The company reported sales of 74.5 million iPhones for the quarter - a new record for the company, and well above analysts projections of 66.5 million phones. It was also 46% higher than iPhone sales for the same period a year ago.

Sales of the company's Mac computers also fared well, gaining 14% at 5.5 million units. The result for computer sales was even more significant given that overall sales of computers industry-wide actually fell by 2.4%. However, sales of the company's iPad products fell to 21.4 million units, down 18% from a year earlier.

"Our exceptional results produced EPS growth of 48 percent over last year, and $33.7 billion in operating cash flow during the quarter, an all-time record," said Luca Maestri, Apple's CFO. "We spent over $8 billion on our capital return program, bringing total returns to investors to almost $103 billion, over $57 billion of which occurred in just the last 12 months."

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Published on Jan 28, 2015
By Kevin Mercadante

Copyrighted 2020. Content published with author's permission.

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