The 10-second takeaway
For the quarter ended March 31 (Q2), Apple beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins increased across the board.
Apple reported revenue of $39.19 billion. The 41 analysts polled by S&P Capital IQ wanted to see sales of $36.79 billion on the same basis. GAAP reported sales were 59% higher than the prior-year quarter's $24.67 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $12.30. The 43 earnings estimates compiled by S&P Capital IQ averaged $10.04 per share. GAAP EPS of $12.30 for Q2 were 92% higher than the prior-year quarter's $6.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.4%, 600 basis points better than the prior-year quarter. Operating margin was 39.3%, 740 basis points better than the prior-year quarter. Net margin was 29.7%, 540 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $37.47 billion. On the bottom line, the average EPS estimate is $9.93.
Next year's average estimate for revenue is $161.01 billion. The average EPS estimate is $44.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 25,565 members out of 27,830 rating the stock outperform, and 2,265 members rating it underperform. Among 6,227 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 6,003 give Apple a green thumbs-up, and 224 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 $666.45.
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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 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.