The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Apple beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and earnings per share increased significantly.
Margins increased across the board.
Apple logged revenue of $46.3 billion. The 42 analysts polled by S&P Capital IQ foresaw net sales of $39.2 billion. Sales were 73% higher than the prior-year quarter's $26.7 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $13.87. The 43 earnings estimates compiled by S&P Capital IQ predicted $10.11 per share. GAAP EPS of $13.87 for Q1 were 116% higher than the prior-year quarter's $6.43 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 44.7%, 620 basis points better than the prior-year quarter. Operating margin was 37.4%, 810 basis points better than the prior-year quarter. Net margin was 28.2%, 570 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $32.0 billion. On the bottom line, the average EPS estimate is $8.02.
Next year's average estimate for revenue is $141.5 billion. The average EPS estimate is $35.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 25,136 members out of 27,287 rating the stock outperform, and 2,156 members rating it underperform. Among 5,640 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 5,414 give Apple a green thumbs-up, and 226 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 $504.94.
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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 owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in 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.