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.
Is Apple the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Apple to My Watchlist.
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 recommends Apple. The Motley Fool owns shares of 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.