Apple Beats Analyst Estimates on EPS

Apple (Nasdaq: AAPL  ) reported earnings on Jan. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Apple met expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share was unchanged.

Margins shrank across the board.

Revenue details
Apple reported revenue of $54.51 billion. The 45 analysts polled by S&P Capital IQ wanted to see a top line of $54.90 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $46.33 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $13.81. The 47 earnings estimates compiled by S&P Capital IQ predicted $13.54 per share. GAAP EPS of $13.81 for Q1 were 0.4% lower than the prior-year quarter's $13.87 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.6%, 610 basis points worse than the prior-year quarter. Operating margin was 31.6%, 580 basis points worse than the prior-year quarter. Net margin was 24.0%, 420 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $45.73 billion. On the bottom line, the average EPS estimate is $11.71.

Next year's average estimate for revenue is $190.14 billion. The average EPS estimate is $48.18.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 26,936 members out of 29,273 rating the stock outperform, and 2,337 members rating it underperform. Among 6,006 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 5,767 give Apple a green thumbs-up, and 239 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Apple is outperform, with an average price target of $734.63.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (6) | Recommend This Article (0)

Comments from our Foolish Readers

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  • Report this Comment On January 24, 2013, at 9:30 AM, dwilh51183 wrote:

    What most of you investors fail to realize is that Apple sold 48 million iPhones, but they did this in the last six weeks of the quarter. Remember in the beginning of the quarter, they had supply constraints could not get the phone in stock. This was really a great quarter. CEO TIM COOK NEEDS TO START INVESTING IN OTHER PEOPLE's patents to develop new products or he will be fired! How can you let your investor's down like this when the stock has fallen 250 $$ a share in 3 months, while sitting on 135 BILLION IN CASH? How can AAPL spend 21 million on a Swiss clock design, yet not pursue other product ideas and inventions ? Mr . Cook , START THE STOCK BUYBACK AND GET MORE IPHONE MODELS RELEASED IMMEDIATELY TO COMPETE W GOOG AND SAMSUNG , and sign up CHINA MOBILE

  • Report this Comment On January 24, 2013, at 11:56 AM, kthor wrote:

    Apple = no more innovation = just all about cash $$$

  • Report this Comment On January 24, 2013, at 1:05 PM, stefna wrote:

    Apple's figures were confirmed as the best quarterly results ever recorded by ANY company in the history of our planet, but Wall Street was disappointed.

  • Report this Comment On January 24, 2013, at 1:32 PM, ViewRoyal wrote:

    Something stinks!!! (and it's coming from the offices of some "analysts")

    Apple shipped a record 47.8 million iPhones in the December quarter, up 29 percent from a year earlier.

    This plus record-breaking revenues and profits, while other companies are struggling to keep above a loss, is called "disappointment" and lowers Apple's stock price???

    A huge 29% increase in iPhone sales is only a "disappointment" to idiot "analysts" who manipulate stock prices by making unrealistic predictions that were not met.

    People should wake up and realize that "analysts" (just like bankers) are only in the business to make money for themselves at the cost of investors.

    There is absolutely no correlation between Apple's current stock price, and the fact that Apple continues to grow revenues and profits much faster than any of its competitors. With Apple taking 80% of the profits of worldwide mobile phone sales, and with a reserve that's grown to $135 Billion, it's totally absurd to call this "disappointment"!

    Even with some "analysts" making ridiculously high, irrational estimates, this poll run by S&P Capital IQ shows Apple actually met the averaged estimated revenues (and it was a HUGE increase from the same quarter a year ago), and more importantly, Apple beat the estimated earnings per share!!!

    Yet we get these "analysts" now downgrading Apple, with the stock price taking a gigantic drop!

    To paraphrase Shakespeare: "Something is rotten in the state of American stock market" (which is why I invest in less corrupted markets outside the US).

  • Report this Comment On January 24, 2013, at 1:57 PM, kthor wrote:

    the circuit breaker preserved alot of apple stock owners from losing $$ any further.... if not if would have gone down to $430 even $400 today .... hard to tell what it might bring later on but lots of people are over-bearish on apple ... think aapl will hit $400 before a call to the northward movement is answered ... i don't want to bet against the majority right now so i'll go along and make $$ on the downward move ...

    and @ ViewRoyal which less corrupt market you talking about? Asia? EU ? Africa? LOL

    they are all the same ... the market moves at the whim of the top 1%, if you follow them, you might make some $$.. Asia market esp China, Philippines and others are very corrupt, it's mostly done on insider trading ...

  • Report this Comment On January 24, 2013, at 2:53 PM, ViewRoyal wrote:

    @ kthor

    Some markets are less corrupt than others... But overall, you are right. Choosing to invest in any company (even the most profitable one in the world, Apple) is like taking your money to a casino. The house always makes money, and they control the rules.

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