The 10-second takeaway
For the quarter ended March 30 (Q2), Apple beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Apple recorded revenue of $43.60 billion. The 41 analysts polled by S&P Capital IQ anticipated sales of $42.42 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $39.19 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 $10.09. The 43 earnings estimates compiled by S&P Capital IQ predicted $10.00 per share. GAAP EPS of $10.09 for Q2 were 18% lower than the prior-year quarter's $12.30 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 37.5%, 990 basis points worse than the prior-year quarter. Operating margin was 28.8%, much worse than the prior-year quarter. Net margin was 21.9%, 780 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $38.26 billion. On the bottom line, the average EPS estimate is $8.82.
Next year's average estimate for revenue is $179.29 billion. The average EPS estimate is $43.14.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 27,636 members out of 29,936 rating the stock outperform, and 2,300 members rating it underperform. Among 5,554 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 5,316 give Apple a green thumbs-up, and 238 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 $597.46.
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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 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.