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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