Tech giant Apple Inc. (NASDAQ: AAPL) put up some impressive numbers for its fiscal fourth quarter this afternoon as the company saw huge shipments of its iPhone and Macintosh products (wsj subscription required), but did forecast that its first quarter was going to be challenging.Going into this afternoon's earnings announcement, analysts had been expecting the company to earn $1.11 a share, but the company shattered that estimate with a reported $1.26 per share, accompanied with a revenue jump of 27% to $7.9 billion.
Most of the attention that Apple has received over the past six months has surrounded its upgraded iPhone, the iPhone 3G. During the quarter, iPhone shipments shot through the roof, rising six times to 6.9 million units.
But the iPhone is not the only product that is shining for Apple. Macintosh sales were up 21%, and iPod sales were also on the rise, with revenues up 8%.
Apple computers have definitely been gaining market share, and according to the company's Chief Operating Officer, Tim Cook, during the quarter, Apple's share of the U.S. retail market rose to 18%.
Looking ahead, Apple issued a weaker-than-expected forecast for its fiscal first quarter, stating that it expects to see earnings during the quarter of $1.06 to $1.35 per share, much lower than the $1.65 that analysts had been expecting. While the forecast is well below what analysts were hoping to see, the company is known for issuing weak forecasts and then blowing them away, as it did once again this period.
Despite the weaker-than-expected forecast, shares of Apple stock are moving sharply higher in after-hours trading, up over 13% to $103.83.
Disclosure: Mr. Fowlkes owns shares in Apple Inc.
Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.
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Reader Comments (Page 1 of 1)
10-21-2008 @ 11:55PM
Lee said...
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10-22-2008 @ 3:21AM
Fredric Dennis Williams said...
There is a reason that professional journalists do not allow owners of a stock to write about the stock. Apple "soars" back to the price it had traded at in the last few weeks -- and still at just over 40% below its highs.
I'm an Apple user, and like its over-priced products, but I think a stockholder should not be writing anything that purports to be news -- even if he admits he is an interested party.