One Rich Apple Pie: Fool by Numbers
By
Anders Bylund
January 23, 2008
|
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
|
*Expressed in percentage points.
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%
|
|
Owner Earnings
|
$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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