Tuesday, July 19, 2011

Apple Earnings Soar to All-Time High in Q2! (Financial Charts) *Astounding financial performance & position!* AAPL

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Apple reported calendar Q2 June 2011 financial results on Tuesday, July 19, 2011
* Charts and commentary have been updated for Apple Q2 June 2011 financial results *


Apple Earnings Soar to All-Time High in Q2!: Astounding financial performance & position!

Apple Financial Summary Q2 2011 Apple + Financial Performance = Superlatives! Previous Apple financial performance records were broken one after another in this latest calendar Q2 2011. Apple has set the bar unbelievably high for itself and the technology sector. Apple reported records: total revenues, net income, earnings per share, cash flow per share, operating margin, and net margin plus near-record gross margin. Financial performance continues onwards and upwards. Financial position is legendary; total assets are now $106.76 billion, including $76.16 billion in cash and investments.

Apple Income Statement Q2 2011 Apple reported record total revenues of $28.57B, record net income of $7.31B, and record earnings per share of $7.79. These are yet again stellar financial performance results! From the prior calendar Q1 2011, total revenues were up +16%, net income up +22%, and earnings per share up +22%. From the prior calendar year Q2 2010, these were up +82%, +125%, and +122%, respectively. All are incredible increases QoQ and YoY! Margins also increased in calendar Q2, which may be the most impressive result. For calendar Q2 2011, gross, operating, and net margins were 41.73%, 32.83%, and 25.58%, respectively. For the prior calendar Q1 2011, these were 41.42%, 31.92%, and 24.27%, respectively. Cash flow from operations was an astounding, and record, $11.84 per share. Apple generated an astonishing $11.1 billion in cash for the quarter!

Apple Balance Sheet Calendar Q2 2011 Total assets increased a staggering +12.49% QoQ to a record $106.76 billion from the prior quarter of $94.90 billion. The capital to assets ratio (total stockholders' equity divided by total assets) is a rock solid 64.95%. The current ratio (current assets divided by total assets) dropped to 43.93%, which continues very liquid. More current assets have been allocated to long-term marketable securities, a noncurrent asset. Apple is very liquid with strong capital. Apple has over $28B in cash, cash equivalents, and marketable securities. Add long-term marketable securities of $47.7B and Apple's cash and investment reserves are a mind-boggling $76+ billion!


Apple Performance by the Quarters (Charts)

Apple Earnings per Share and Cash Flow per Share (Chart) Below is a chart of quarterly earnings per diluted share and quarterly cash flow from operations per diluted share (before purchases of property and equipment). Current Earnings per Share of $7.79 is an all-time record high and an amazing +22% increase over prior Q1 2011 of $6.40. Current Cash Flow per Share of $11.84 is also an all-time record high and an unbelievable +78% increase over prior Q1 2011 of $6.64. Recent chart data is:
Quarter, Earnings per Diluted Share, Cash Flow  per Diluted Share
Jun10: $3.51, $5.18
Sep10: $4.64, $6.12
Dec10: $6.43, $10.47
Mar11: $6.40, $6.64
Jun11: $7.79, $11.84


Apple Total Revenues, Operating Income, and Net Income (Chart) Below is a chart of quarterly total revenues, operating income, and net income. For Q2 2011, all 3 are all-time record highs for Apple. Current Total Revenues of $28.57B is a very strong +16% increase from prior Q1 2011 of $24.67B. Current Operating Income of $9.38B is a significant increase over prior Q1 2011 of $7.87B. Current Net Income of $7.31B is also a strong increase over prior Q1 2011 of $5.99B. Recent chart data is:
Quarter, Total Revenues, Operating Income, Net Income
Jun10: $15.7B, $4.2B, $3.25B
Sep10: $20.3B, $5.4B, $4.3B
Dec10: $26.7B, $7.8B, $6.0B
Mar11: $24.7B, $7.9B, $5.99B
Jun11: $28.6B, $9.4B, $7.3B


Apple Gross Margin, Operating Margin, and Net Margin (Chart) Below is a chart of quarterly gross margin, operating margin, and net margin. Current Gross Margin increased yet again to a multi-year, if not all-time, high of 41.73%. Current Operating Margin of 32.83% is a multi-year, if not all-time, high. Current Net Margin of 25.58% sets a technology sector standard is a multi-year, if not all-time, high. This is the 5th consecutive quarter that net margin has been above 20%. Recent chart data is:
Quarter, Gross Margin, Operating Margin, Net Margin
Jun 10: 39.08%, 26.97%, 20.72%
Sep10: 36.93%, 26.78%, 21.18%
Dec10: 38.51%, 29.27%, 22.45%
Mar11: 41.42%, 31.92%, 24.27%
Jun11: 41.73%, 32.83%, 25.58%


Apple Return on Assets (Chart) Below is a chart of quarterly return on average assets, annualized. The quarterly ROA is quarter on quarter, (Q/Q or QoQ). Current Return on Assets of 28.99% rebounded and is just below the Q4 2010 peak of 29.66%. Apple's return on assets are not only incredible, but for a technology giant such as Apple (total assets $106.8 billion) to be above 25+% ROA is legendary. Limited chart data (due to Change in Accounting Method) is:
Quarter, Quarterly ROA Annualized
Jun 10: 21.37%
Sep10: 24.63%
Dec10: 29.66%
Mar11: 26.37%
Jun11: 28.99%


Apple Growth Rates (Chart) Below is a chart of the quarterly (QoQ, Q/Q, quarterly change) growth rates for revenues and earnings per share. The growth rates accelerated with the legendary Q4 December 2010 financial performance but decreased to negative, as expected, for Q1 March 2011. Now in Q2 June 2011 growth rates have re-accelerated. Apple is the largest tech company in the USA by market capitalization ($300+ billion), has $106.8 billion in total assets, and total revenues above $25 billion. To maintain these high flying growth rates, even until now, is unprecedented. Recent chart data is;
Quarter, Total Revenues Change %, Earnings Per Share Change %
Jun10: +16.30%, +5.41%
Sep10: +29.57%, +32.19%
Dec10: +31.45%, +38.58%
Mar11: -7.76%, -0.47%
Jun11: +15.83%, +21.72%


Apple Geographic Revenues (Chart) Below is a chart of geographic revenues by quarter and is limited to what Apple chooses to disclose. International revenues accounted for 62% of Apple's total revenues in the latest quarter reported, Q2 2011. This is an increase from the 59% reported last quarter. Noteworthy is the increasing sales in the Asia Pacific region, now 22.2% of total sales compared to 11.6% a year ago, Q2 2010. Recent chart data is;
Quarter, Americas, Europe, Japan, Asia Pacific, Retail
Jun10: $6.2B, $4.2B, $910M, $1.8B, $2.6B
Sep10: $7.2B, $5.5B, $1.4B, $2.7B, $3.6B
Dec10: $9.2B, $7.3B, $1.4B, $4.98B, $3.8B
Mar11: $9.3B, $6.0B, $1.4B, $4.7B, $3.2B
Jun11: $10.1B, $7.1B, $1.5B, $6.3B, $3.5B


Apple Product Revenues (Chart) Below is a chart of product revenues by quarter and is limited to what Apple chooses to disclose. Computers increased to $5.1B to $4.98B QoQ. iPods dropped again to $1.3B from $1.6B. iTunes were down to $2.78B from $2.96B. iPhone was another huge gain to $13.3B from $12.3B. iPad soared to $6.05B from $2.84B and carried the quarter, with some help from iPhone. Recent chart data is;
Quarter, Computers, iPods, iTunes Other, iPhone, iPad
Jun10: $4.4B, $1.5B, $2.3B, $5.3B, $2.2B
Sep10: $4.9B, $1.5B, $2.4B, $8.8B, $2.8B
Dec10: $5.4B, $3.4B, $2.8B, $10.5B, $4.6B
Mar11: $4.98B, $1.6B, $2.96B, $12.3B, $2.8B
Jun11: $5.1B, $1.3B, $2.8B, $13.3B, $6.0B


Apple Change in Accounting Method
Note: A change in accounting method to Generally Accepted Accounting Principles - GAAP - materially affects how Apple reports quarterly earnings, therefore, only earnings under the new accounting method are in the charts above, unless so noted.
Apple Official Statement 1: "In September 2009, the Financial Accounting Standards Board amended the accounting principles related to certain revenue recognition. Apple adopted the new accounting principles on a retrospective basis during the first quarter of 2010. The new accounting principles significantly change how Apple accounts for certain items, particularly sales of iPhone and Apple TV. The earnings releases for periods prior to Q1 2010 are presented as originally issued and do not reflect the application of the new accounting principles."
Apple Official Statement 2: "During the quarter (3 months ended December 26, 2009) Apple elected retrospective adoption of the Financial Accounting Standards Board’s amended accounting standards* related to certain revenue recognition. Adoption of the new accounting standards significantly changes how the Company accounts for certain items, particularly sales of iPhone® and Apple TV®."


Apple Reports Calendar Second Quarter 2011 Results: All-Time High Revenues and Earnings

CUPERTINO, California—July 19, 2011—Apple today announced financial results for its fiscal 2011 third quarter ended June 25, 2011. The Company posted record quarterly revenue of $28.57 billion and record quarterly net profit of $7.31 billion, or $7.79 per diluted share. These results compare to revenue of $15.70 billion and net quarterly profit of $3.25 billion, or $3.51 per diluted share, in the year-ago quarter. Gross margin was 41.7 percent compared to 39.1 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

The Company sold 20.34 million iPhones in the quarter, representing 142 percent unit growth over the year-ago quarter. Apple sold 9.25 million iPads during the quarter, a 183 percent unit increase over the year-ago quarter. The Company sold 3.95 million Macs during the quarter, a 14 percent unit increase over the year-ago quarter. Apple sold 7.54 million iPods, a 20 percent unit decline from the year-ago quarter.

We’re thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent,” said Steve Jobs, Apple’s CEO. “Right now, we’re very focused and excited about bringing iOS 5 and iCloud to our users this fall.”

We are extremely pleased with our performance which drove quarterly cash flow from operations of $11.1 billion, an increase of 131 percent year-over-year,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter of 2011, we expect revenue of about $25 billion and we expect diluted earnings per share of about $5.50.”


About Apple

Apple's Mission Statement and described in press releases, "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices."


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