The 10-second takeaway
For the quarter ended June 30 (Q3), Apple missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Gross margins grew, operating margins grew, net margins shrank.
Apple reported revenue of $35.02 billion. The 39 analysts polled by S&P Capital IQ looked for a top line of $37.36 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $28.57 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $9.32. The 42 earnings estimates compiled by S&P Capital IQ anticipated $10.41 per share. GAAP EPS of $9.32 for Q3 were 20% higher than the prior-year quarter's $7.79 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.8%, 110 basis points better than the prior-year quarter. Operating margin was 33.0%, 20 basis points better than the prior-year quarter. Net margin was 25.2%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $37.65 billion. On the bottom line, the average EPS estimate is $10.07.
Next year's average estimate for revenue is $160.76 billion. The average EPS estimate is $46.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 26,085 members out of 28,348 rating the stock outperform, and 2,263 members rating it underperform. Among 6,421 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 6,214 give Apple a green thumbs-up, and 207 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Apple is buy, with an average price target of $746.15.
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