Apple beats by $0.16, beats on revs; guides Q4 revs above consensus
- Reports Q3 (Jun) earnings of $2.34 per share, $0.16 better than the Capital IQ Consensus of $2.18; revenues rose 17.3% year/year to $53.27 bln vs the $52.43 bln Capital IQ Consensus; gross margins 38.3% vs 38.3% ests and 38.5% last year (guidance 38.0-38.5%).
- iPhone shipments 41.3 mln vs 42 mln ests vs 41 mln last year, ASP $724 vs. $694 ests
- iPad of 11.5 mln vs 11.2 mln ests vs 11.4 mln last year; Macs of 3.7 mln vs 4.3 mln ests vs 4.3 mln units last year.
- Service rev +31% to $9.55 bln vs. $9.2 bln ests.
- Americas rev +20% to $24.5 bln; Europe +14% to $12.1 bln; China +19% to $9.55 bln; Japan +7% to $3.9 bln, A-Pac +16% to $3.2 bln
- Co issues upside guidance for Q4, sees Q4 revs of $60-62 bln vs. $59.4 bln Capital IQ Consensus; gross margins of 38.0-38.5% vs 38.2% ests and 37.9% last year.
- "We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth," said Tim Cook, Apple's CEO. "Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline." "Our strong business performance drove revenue growth in each of our geographic segments, net income of $11.5 billion, and operating cash flow of $14.5 billion," said Luca Maestri, Apple's CFO. "We returned almost $25 billion to investors through our capital return program during the quarter, including $20 billion in share repurchases."