Apple outstrips expectations

Company’s quarterly results sent shares soaring into record territory

Tags: Apple IncorporatedUSA
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Apple outstrips expectations Apple's shares have soared into record territory following its very strong quarterly results.
By  Georgina Enzer Published  January 25, 2012

Apple's quarterly results far exceeded Wall Street expectations, sending the company's shares up 8% and into record levels, according to Reuters.

Apple reported a net profit of $13.06 billion, or $13.87 a share, outstripping an average Wall Street forecast of $10.16 per share.

Apple customers snapped up 37.04 million iPhones and 15.43m iPad tablets during the latest quarter, doubling numbers from 2011 and far exceeding expectations for a strong holiday season.

Sales helped increase the company's cash and securities to approximately $100bn, enough to plug December's US budget deficit and level with California's 2012/13 spending plan, according to Reuters.

The company snapped back to form this quarter, following a disappointing previous quarter, which saw investors worrying that Apple's sheer size would send it into a period of slower growth.

Apple's gross margin came in at 44.7% during the quarter and revenue leapt 73% to $46.33bn, beating the average Wall Street analyst estimate of $38.91bn, according to Thomson Reuters.

Sales in the United States saw a 90% increase in revenue, while sales in Europe were up 55%, despite the region's debt crisis.

Shares in Apple jumped 8% to about $452 in extended trade following the earnings report. The stock - which set a record high of $427.75 just this month - had closed at $420.41 on the Nasdaq.

Apple expects revenue of $32.5bn for its fiscal second quarter, ahead of analyst estimates.

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