On Jan. 22, ubiquitous gadget guru Apple (Nasdaq: AAPL) released first-quarter 2008 earnings for the period ended Dec. 29, 2007.
- The iPod/iTunes gravy train rolls on, right alongside iPhones, iMacs, iToasters, and iSinks. OK, not the last two, but you get the picture.
- Apple doesn't much like to repurchase stock; it hasn't paid a dividend since 1996, when the iPod was but a glimmer in Steve Jobs' spectacled eye; and it spent just $455 million on acquisitions in the last 20 years. What are you hoarding all that cash for, Steve?
- Then again, this company is less recession-proof than some others I can think of. Forty-four percent of Apple's revenue comes from the Americas alone. A debt-free, $18 billion bankroll should get Cupertino through plenty of bad times.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2008 |
Q1 2007 |
Change | |
|---|---|---|---|
|
Sales |
$9,608 |
$7,115 |
35.0% |
|
Net Profit |
$1,581 |
$1,004 |
57.5% |
|
EPS |
$1.76 |
$1.14 |
54.4% |
|
Diluted Shares |
900.1 |
883.3 |
1.9% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2008 |
Q1 2007 |
Change* | |
|---|---|---|---|
|
Gross Margin |
34.7% |
31.2% |
3.5 |
|
Operating Margin |
22.1% |
18.6% |
3.5 |
|
Net Margin |
16.5% |
14.1% |
2.4 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$18,448 |
$11,869 |
55.4% |
|
Accounts Rec. |
$1,939 |
$1,621 |
19.6% |
|
Inventory |
$459 |
$303 |
51.5% |
|
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Accounts Payable |
$5,366 |
$3,885 |
38.1% |
|
Long-Term Debt |
$0 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2008 |
Q1 2007 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$2,787 |
$1,813 |
53.7% |
|
Capital Expenditures |
$224 |
$142 |
57.7% |
|
Free Cash Flow |
$2,563 |
$1,671 |
53.4% |
|
$1,463 |
$936 |
56.3% |
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap |
Trailing P/E Ratio |
CAPS Rating | |
|---|---|---|---|
|
Apple |
$120,680 |
34.9 | |
|
Research In Motion (Nasdaq: RIMM) |
$47,560 |
45.3 | |
|
Dell (Nasdaq: DELL) |
$43,920 |
14.8 | |
|
Adobe Systems (Nasdaq: ADBE) |
$19,120 |
27.5 | |
|
Netflix (Nasdaq: NFLX) |
$1,490 |
24.0 |
Using the latest reported numbers from Capital IQ. Keep your partners close and the competition in your vest pocket.
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