Apple Crunches Q2 Estimates: Fool by Numbers

On April 19, 2006, Apple Computer (Nasdaq: AAPL  ) released Q2 2006 earnings for the period ended April 1.

  • EPS easily exceeded Street expectations, while computer sales came up short. That could be because consumers were waiting on more Intel-based Mac models. Indeed, management warned of such an occurrence during yesterday's conference call, saying that it could stall Mac sales in Q3, according to the Associated Press.

  • Apple sold more than 8.5 million iPods during the quarter, up 61% year over year. Revenue from iPod sales reached $1.7 billion, eclipsing total revenue from portable and desktop computers.

  • Third-quarter projections of $0.39 to $0.43 in per-stub earnings on $4.2 to $4.4 billion in revenue were lighter than expected. Analysts had called for $0.47 per share on $4.72 billion in sales in Q3, according to Capital IQ.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

% Change

Sales

$4,496

$4,359

$3,243

34.4

Net Profit

--

$410

$290

41.4

EPS

$0.43

$0.47

$0.34

38.2



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005

% Change

Gross Margin

29.75%

29.85%

(0.09)

Op. Margin

12.14%

12.40%

(0.26)

Net Margin

9.41%

8.94%

0.46



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

% Change

Cash+ ST Invest.

$8,226

$7,057

16.6

Inventory

$204

$164

24.4

Accounts Rec.

$861

$888

(3.0)



Liabilities

Q2 2006

Q2 2005

% Change

Long-Term Debt

$-

$-

N/A

Accounts Pay.

$2,108

$1,773

18.9



Learn the ways of the balance sheet.

Cash Flow Highlights
No cash flow statement provided. (Whatever.)

Find out why Fools always follow the money.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.

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Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Fool profile. Dell is also aMotley Fool Stock Advisorpick. The Fool's disclosure policy looks great in a black turtleneck and jeans.


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