On July 25, iGadget maker Apple
- It's another blowout quarter -- earnings came in a full 50% above management guidance, and revenues beat the official forecast by 6%.
- The desktop computer segment showed higher growth in revenues than in units over last year, so the average system sold was more expensive. The reverse is true for laptops, and only more so in iPod-land, where 21% more gadgets brought in just 5% higher revenue.
- There's no cash flow statement until Apple releases a full 10-Q statement, though management did say that the company saw "more than $1.2 billion" of net cash from operations.
- Speaking of cash, is that debt-free cash balance ridiculous, or what? Apple's net cash balance is in the same league as that of Google
(NASDAQ:GOOG) , and at this growth rate it might surpass Cisco(NASDAQ:CSCO) and even Microsoft(NASDAQ:MSFT) in a year or so. Yet this company has nowhere near the acquisition appetite of those other giants, and I'm wondering what Steve Jobs plans to do with all that moola. Surely not dividend payments, right?
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$5,410 |
$4,370 |
23.8% |
|
Net Profit |
$818 |
$472 |
73.3% |
|
EPS |
$0.92 |
$0.54 |
70.4% |
|
Diluted Shares |
890.7 |
876.4 |
1.6% |
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
36.9% |
30.3% |
6.6 |
|
Operating Margin |
19.2% |
13.0% |
6.3 |
|
Net Margin |
15.1% |
10.8% |
4.3 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$13,767 |
$9,176 |
50.0% |
|
Accounts Rec. |
$1,410 |
$1,089 |
29.5% |
|
Inventory |
$251 |
$213 |
17.8% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$3,660 |
$2,513 |
45.6% |
|
Long-Term Debt |
$0 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
Free cash flow is a Fool's best friend, but once again, we're denied that statement by Apple. Boo! Hiss! Boo again!
Related Foolishness:
- Foolish Forecast: Cupertino Appletini
- My Name Is iPhone, and I'm Here to Destroy You
- Google: The Real iPhone Killer
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At the time of publication, Anders Bylund was a Google shareholder but had no other position in any company mentioned. Fool rules are here.
