The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Apple met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share was unchanged.
Margins shrank across the board.
Apple reported revenue of $54.51 billion. The 45 analysts polled by S&P Capital IQ wanted to see a top line of $54.90 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $46.33 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 $13.81. The 47 earnings estimates compiled by S&P Capital IQ predicted $13.54 per share. GAAP EPS of $13.81 for Q1 were 0.4% lower than the prior-year quarter's $13.87 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 38.6%, 610 basis points worse than the prior-year quarter. Operating margin was 31.6%, 580 basis points worse than the prior-year quarter. Net margin was 24.0%, 420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $45.73 billion. On the bottom line, the average EPS estimate is $11.71.
Next year's average estimate for revenue is $190.14 billion. The average EPS estimate is $48.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 26,936 members out of 29,273 rating the stock outperform, and 2,337 members rating it underperform. Among 6,006 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 5,767 give Apple a green thumbs-up, and 239 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 $734.63.
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