Apple Quarterly Earnings Analysis: By the Numbers

Apple Inc Head Office Campus, Infinite Loop, Cupertino, Californias, USA
Ian G. Dagnall/Alamy

Apple (AAPL) just reported its preliminary financial for the quarter that ended Sept. 30, results based on which we provide a unique corporate earnings release based analysis of its performance. Our analysis focuses on the company's performance for the same quarterly period on a year-on-year basis (unless stated otherwise).This earnings release follows the earnings announcements from the following peers of Apple: Intel (INTC), Google (GOOG) and SanDisk (SNDK).

Highlights

  • Summary numbers: Revenues of $42.123 billion, Net Earnings of $8.467 billion and EPS of $1.42. Performance focus more on top-line than bottom-line: same period year-on-year change of revenue of 12.75% vs. change in earnings of 12.71%.

  • Gross margins now 38.01% from 40.90% compared to the same period last year, EBITDA margins now 26.51% from 30.62%

  • Ability to declare a higher earnings number? Year-on-year change in Operating Cash Flow of 42.20% better than change in earnings.

  • Earnings growth from operating margin improvements as well as from unusual items