Apple Quarterly Earnings Lower Than Expected
Apple Quarterly Earnings Lower Than Expected

Apple Inc. failed to set a new sales record in the last three months of founder and CEO Steve Jobs' life. Its financial results came in below expectations on Tuesday - a rare miss for the company.

After several record quarters, the July-to-September period saw Apple biding its time, with no new iPhone or iPad releases.

Earnings and revenue rose from last year at rates that would be the envy of any large company, but investors had expected the seemingly unstoppable company to do even better.

Steve Jobs In Memoriam: All of Our Coverage

Net income in the fiscal fourth quarter was $6.62 billion, or $7.05 per share. That was up 54 percent from $4.31 billion, or $4.64 per share, a year ago.

Analysts polled by FactSet were expecting earnings of $7.28 per share.
Revenue was $28.3 billion, up 39 percent. Analysts were expecting $29.4 billion.

Apple sold 17.1 million iPhones in the quarter, which ended Sept. 24. That was well below analyst expectations and the 20.3 million sold in the third quarter.

IPhone buyers had been holding off and waiting for the new model that was launched last week, after the end of the quarter. Still, analysts expected the older models to keep much of their appeal.


Don't miss Billboard's FutureSound Conference, taking place November 17-18 at Terra in San Francisco. FutureSound will feature keynotes from the top minds in investment, technology and music today; presentations that will offer specific solutions structured around answering the most pressing questions; and workshops.

Laptops were Apple's strongest category in the quarter, with sales up 30 percent from the previous quarter thanks to the release of a new operating system, Lion. Total Mac sales set an all-time record at 4.9 million.

Apple's forecast for the current quarter was more pleasing to investors. It said it expects earnings of $9.30 per share and revenue of $37 billion.

Apple Unveils iPhone 4S, iTunes Match Set for Late October Launch

Apple usually low-balls its forecasts, and analyst figures are usually higher. But in this case, analysts have had lower figures, expecting earnings of $9 per share and revenue of $36.7 billion.

Jobs relinquished his position as CEO in August, after going on medical leave in January. He died Oct. 5 after years of battling pancreatic cancer.

Apple's stock was down $24.33, or 5.8 percent, at $397.91 in afterhours trading, losing one week of gains. At the close of regular trading, it was the world's most valuable company, but the stock drop means it's yielding the position to Exxon Mobil Corp.

Questions? Comments? Let us know: @billboardbiz

Print