Apple earnings jump 54% but misses targets |
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Apple earnings jump 54% but misses targets
iPhone sales disappointed in the third quarter of 2011, likely due to customers waiting for the updated iPhone 4S.
Apple Inc. shares sank in after-hours trading on Tuesday after the company posted a 54 percent profit jump on a 39 percent increase in revenue.
The Cupertino, Calif. company (NASDAQ:AAPL) said it earned $6.62 billion, or $7.05 per share, compared to net income of $4.31 billion, or $4.64 per share, last year.
Revenue grew to $28.27 billion from $20.34 billion a year ago. Wall Street was expecting $7.38 per share in earnings on revenue of $29.7 billion.
Depending on which analyst survey one cites, it marked the first time the company missed Wall Street expectations in 7-9 years.
The big disappointment in the quarter was in iPhone sales of 17.07 million units, up 21 percent, but below the 20 million that had been expected. Some of that may have been customers waiting for the new iPhone 4S which came out after quarter closed.
In another reversal of past history, Apple's outlook was above Wall Street expectations. It has been accused of low-balling estimates in the past.
This time the company said it expects calendar fourth-quarter earnings of $9.30 per share, compared to $9.03 that analysts have projected.
It said revenue for the current period should be $37 billion, compared to analyst expectations of $36.7 billion.
Apple sold 11.1 million iPad units in the latest quarter, nearly triple what it sold a year ago, and at the low end of the projected range for the tablet devices.
The company sold 4.9 million Macintosh computers, at the high end of projections and up 26 percent from a year earlier.
It also sold 6.6 million iPod media players, down 27 percent.
The iPhone is a competitor to Redmond-based Microsoft Corp.'s (NASDAQ: MSFT) Windows Phone, which currently holds 5.7 percent of the smartphone operating system market versus Google Inc.’s (NASDAQ: GOOG) Android at 43 percent, Apple’s iOS at 27 percent and Research in Motion Ltd.'s Blackberry phone at 19 percent, according to August 2011 data from comScore.
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