Apple Digest: Apple Reports Earnings on Wednesday, April 20 (Charts) *Financial Performance Review* AAPL

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Apple reports earnings on Wednesday, April 20, 2011

Apple Financial Performance Review

Apple will be reporting quarterly financial results on Wednesday, April 20 after market close and usually just before the earnings conference call. The conference call will be at 2:00 p.m. PT. Apple financial performance charts for prior quarters have been posted on the Apple Financial Performance page and will be updated for this next quarterly report. The charts are:

Apple Performance by the Quarters

Earnings per Share (Diluted) and Cash Flow per Share

Total Revenues, Operating Income, Net Income

Gross Margin, Operating Margin, Net Margin

Return on Assets

Total Revenues and Earnings per Share Growth Rates
Geographic Revenues
Product Revenues

Apple Future and Past Financial Performance

Q1 2011 Analysts' Estimates

Yahoo Finance analysts' estimates for Q1 2011 are:

Total Revenues: $23.18B average, $21.99B low estimate, $24.88B high estimate, 42 analysts

Earnings per Share: $5.33 average, $4.85 low estimate, $5.98 high estimate, 46 analysts

Q1 2011 Apple Outlook

CFO Peter Oppenheimer provided guidance for the Q4 2010 quarter: revenues $22 billion, gross margin 38.5%, operating expenses $2.35 billion, other income & expense $50 million, income tax rate 25.5%, targeting earnings per share at “about” $4.90. Apple usually provides low guidance and beats.

Q4 2010 Financial Results

When Apple reports calendar Q1 2011, the 3 months ended March, financial results on April 20, Apple should meet or beat various Q4 2010 results. These results are charted on the Apple Financial Performance page. Apple for Q4 2010, the 3 months ended December, financial results were:

Total Revenues $26.74B

Operating Income $7.83B

Net Income $6.00B

Earnings per Share (Diluted) $6.43

Cash Flow per Share $10.47

Gross Profit Margin 38.51%

Operating Income Margin 29.27%

Net Income Margin 22.45%

Summary

Apple should beat their own Q1 2011 outlook ($4.90 earnings per share). The question is how much higher than $5.00 per share Apple will report. The analysts' average EPS is $5.33, which Apple will probably beat. Apple reported record Total Revenues of $26.7B and Net Income of $7.83B in Q4 2010. In Q4 2010, Earnings per Share were a record $6.43 and Cash Flow per Share was a record $10.47. Q1 2011 is expected to be exceptional, but Q4 is typically the best quarter of the year for Apple due to holiday sales. For Q1 2011, Apple matching Q4 2010 on Total Revenues, Operating Income, Net Income, Earnings per Share, and Cash Flow per Share would be exceptional. A beat would be legendary. Apple is expected to match the Q4 Gross Profit Margin (38.51%), which is also Apple's outlook (38.5%). The detailed quarter by quarter charts are on the Apple Financial Performance page.

More Charts and Analysis!