Apple 2Q Results Easily Top Estimates

By Kathryn Glass Features FOXBusiness


Tech bellwether Apple Inc. (AAPL) posted second-quarter results that smashed expectations on stronger iPhone sales. The shares jumped 3% in after-hours trading, even as the company gave muted guidance for the fiscal third quarter.

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Apple forecast third-quarter earnings of $5.03 per share, on revenue of about $23 billion. That’s beneath analyst forecasts for $5.25 a share on revenue of $23.82 billion; however, the Street had expected a more conservative view as a result of production problems due to the earthquake in Japan.

In the second quarter, the consumer tech giant weighed in with profit of $5.99 billion, or $6.40 a share, compared with year-ago earnings of $3.07 billion, or $3.33 per share.

Revenue soared to $24.67 billion, up from $13.50 billion in the second quarter of last year.

Gross margin narrowed slightly to 41.4% during the second quarter, down from 41.7%, one year ago. The company said international sales made up 59% of quarterly revenue. 

The results handily topped both consensus estimates and the whisper number. Analysts had predicted fiscal second-quarter earnings of $5.36 on revenue of $23.34 billion, according to a poll by Thomson Reuters; the whisper number was $5.49, according to

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The company was expected to do well in the fiscal second quarter, with iPhone sales rising after its launch on Verizon (VZ) and the launch of the iPad 2. IPhone unit sales rose 15% to 18.6 million in the second quarter, as iPad unit sales slipped 36% to 4.7 million units.

"With quarterly revenue growth of 83% and profit growth of 95%, we're firing on all cylinders," said Steve Jobs, Apple's CEO, in a statement. "We will continue to innovate on all fronts throughout the remainder of the year."

Shares of Apple rose more than 1% in Wednesday’s session, up $4.55 to close the day at $342.41.  The stock was up $9.93, or 3%, in after-hours trading.

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