Apple Announces Third Quarter Financial Report: Apple has announced financial results for its fiscal 2014 third quarter which ended in June 28, 2014. Surprising results came from the Cupertino giants as the figures declared were lower than what analyst predicted.
The company reported a revenue to the tune $37.4 billion at the end of the quarter, this showed an increase of $2.1 billion as compared to the revenue generated in the year-ago quarter. Net profit was $7.7 billion, with a diluted earnings per share of $1.28. The revenue was much lower than the what was achieved in the second quarter, this may be as a result of fewer phone portfolio and the rumours of new iPhones slowing sales.
Apple also reported a sale of 35.2 million iPhones in the quarter ending in June 2014, an increase of 4 million over last year while the total units of iPads sold sits at 15.3 million.
Apple sold more Macs during the last quarter as the company reported sales of 4.4 million Macs, compared to under 3.8 million in year ago quarter.
Read full the press release below:
CUPERTINO, California—July 22, 2014—Apple® today announced financial results for its fiscal 2014 third quarter ended June 28, 2014. The Company posted quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion, or $1.28 per diluted share. These results compare to revenue of $35.3 billion and net profit of $6.9 billion, or $1.07 per diluted share, in the year-ago quarter. Gross margin was 39.4 percent compared to 36.9 percent in the year-ago quarter. International sales accounted for 59 percent of the quarter’s revenue.
Apple’s board of directors has declared a cash dividend of $.47 per share of the Company’s common stock. The dividend is payable on August 14, 2014, to shareholders of record as of the close of business on August 11, 2014.
“Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters,” said Tim Cook, Apple’s CEO. “We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.”
“We generated $10.3 billion in cash flow from operations and returned over $8 billion in cash to shareholders through dividends and share repurchases during the June quarter,” said Luca Maestri, Apple’s CFO. “We have now taken action on over $74 billion of our $130 billion capital return program with six quarters remaining to its completion.”
Apple is providing the following guidance for its fiscal 2014 fourth quarter:
- revenue between $37 billion and $40 billion
- gross margin between 37 percent and 38 percent
- operating expenses between $4.75 billion and $4.85 billion
- other income/(expense) of $250 million
- tax rate of 26.1 percent