Despite middling fiscal Q3 results, iPhone sales record sends Apple shares up
Michelle Clancy | 24-07-2013
Apple delighted investors with its fiscal 2013 third quarter results: the giant from Cupertino posted quarterly revenue of $35.3 billion, barely up from $35 billion year-over-year — but the company also set a quarterly record for iPhone sales, moving 31.2 million of the video-friendly smartphones, compared to 26 million in the year-ago quarter.
International sales accounted for 57% of the quarter's revenue.
The rest of the company's results were slightly down from one year ago: net profit slid almost 22% to $6.9 billion, or $7.47 per diluted share, from the $8.8 billion, or $9.32 per diluted share, in the year-ago quarter. Apple also sold fewer iPads (14.6 million) during the quarter, down from 17 million last year. And, it sold 3.8 million Macs, compared to 4 million in the year-ago quarter.
Worse, gross margin was 36.9% compared to 42.8% in the year-ago quarter.
However, investors rewarded Apple for its iPhone sales, sending shares up 4%.
Apple's board of directors has also declared a cash dividend of $3.05 per share of the company's common stock. The dividend is payable on 15 August to shareholders of record as of the close of business on 12 August.
"We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services," said Tim Cook, Apple's CEO. "We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014."
"We generated $7.8 billion in cash flow from operations during the quarter and are pleased to have returned $18.8 billion in cash to shareholders through dividends and share repurchases," said Peter Oppenheimer, Apple's CFO.
Apple provided the following guidance for its fiscal 2013 fourth quarter:
- Revenue between $34 billion and $37 billion
- Gross margin between 36% and 37%
- Operating expenses between $3.9 billion and $3.95 billion
- Other income/(expense) of $200 million
- Tax rate of 26.5%