Apple blew away earnings on Tuesday with EPS of 6.43 vs consensus estimates of 5.39. This is a beat of 1.04 and over 19% of what the analysts were thinking.
I have included some highlights from the conference call below. Remember to visit SeekingAlpha for conference call transcripts.
- Revenue for the quarter was $26.7 billion, an increase of more than $11 billion over the prior December quarter’s result, representing growth of 71%.
- Added the Beatles to iTunes during the quarter.
- iTunes users are now renting and purchasing over 400,000 TV episodes and over 150,000 movies per day.
- Sold 16.2 million iPhones compared to 8.7 million in the previous December quarter. This represents 86% year-over-year growth
- Enterprise customers continue to embrace iPhone, with 88 of the Fortune 100 companies now testing or deploying iPhones.
- Apple sold 7.3 million iPads, a sequential increase of over 3 million, with distribution in 46 countries by the end of the December quarter.
- Over 80% of the Fortune 100 are already deploying or piloting iPad, up from 65% in the September quarter.
- Retail Apple Store revenue almost doubled year-over-year to $3.85 billion compared to $1.97 billion in the year-ago quarter, an increase of 95%.
- Apple’s four stores in China were, on average, their highest traffic and their highest revenue stores in the world.
- Opened six stores during the December quarter, bringing us to a total of 323 stores worldwide at the quarter end, with 87 of them outside the United States.
- Total company gross margin was 38.5%
There was no talk about Steve Jobs, his health issues, or the future of the leadership of the company on this call. Tim Cook, the Chief Operating Officer has long been rumored the successor of Jobs and there is no reason to think otherwise. Jobs’ health issues are obviously nothing new and I guarantee they have already played out this scenario.
In all, Apple is really firing on all cylinders. The iPad, like the iPod and iPhone, was one of the first products of it’s kind in the market and now everybody has to play catch-up. Apple will be on it’s second generation before most are even on the market. Microsoft was more than 2 years behind when developing a smartphone and it seems that they will be close when it comes to a tablet too. I also see the same thing happening with Android tablets as I see happening with the Android phones, many flavors, many vendors, and lots of confusion.
I am still stunned by the lack of talk in the iAd network. When I first pitched the stock, I focused on iAd taking share from Google and AdMob and becoming a cash cow in the future. I am seeing more and more iAds and feel this thesis is playing out, just slower than expected. Apple seems to concentrate on putting more hardware in the consumers hand and letting the iAd network grow organically which, now that I think about it, is exactly what they should have done. I guess that is why Apple is Apple.