Apple far surpasses expectations

Source: Exec Digital USA

Date :23/10/2007 03:57:07

Apple Inc far exceeded analysts’ expectations on Monday, posting a 67 percent rise in profit boosted by the popularity of its iPhone and iPod, and Macintosh computer sales.

Net profit climbed to $904 million or $1.01 per share, in its fiscal fourth quarter, from $542 million, or 62 cents per share, a year ago. Wall street’s target was 85 cents per share.

Revenue rose 29 percent to $6.22 billion where analysts had expected $6.06 billion.

iBrand

Falling prices of electronic components also added to the strong posting, lifting gross profit margin to 33.6 percent.

The Californian-based company also reported that it had shipped 1.12 million units of its new iPhone, which has caused the group’s share to more than double since it was unveiled earlier this year.

Sales of its Macintosh computers also climbed, selling 2.2 million, a rise of 34 percent from a year earlier and above Wall Street expectations of about two million.

iPod sales also rose, selling 10.2 million iPods, compared to analysts estimates of nine to ten million.

Strong outlook

"We are very pleased to have generated over $24 billion in revenue and $3.5 billion in net income in fiscal 2007," said Steve Jobs, Apple's chief executive speaking about the full year figures. "We're looking forward to a strong December quarter as we enter the [Christmas] season."

The company said it expects that to fall to 31 percent in its current quarter as prices for some parts start to rise again.

Apple also forecast first-quarter profit of $1.42 per share and revenue of $9.2 billion, ahead of the $1.40 per share and $8.7 billion that were the average Wall Street targets.

October 23 2007

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