Financial Report Card Shows Progress - Report on Apple Inc.

Aug 07, 2015, 09:00 ET from www.aciassociation.com

NEW YORK, August 7, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Apple Inc. (NASDAQ: AAPL). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=AAPL

Highlights from our AAPL Report include:

  • Record Q3 Results - On July 21, 2015 Apple Inc. announced its financial results for its third quarter ended June 27, 2015. Apple reported revenues of $49.6 billion for the quarter as compared to $37.4 billion reported during Q3 FY14, thereby registering a growth of close to 33% on a y-o-y basis. The Company informed that the growth was fueled by record third quarter sales of iPhone® and Mac®, all-time record revenue from services and the successful launch of Apple Watch™. Gross margin for the quarter was reported to be 39.7%, an improvement of 30 bps over the 39.4% margin attained in Q3 FY14. Apple's net profit for Q3 FY15 came in at $10.7 billion or about $1.85 per diluted share, as against reported net profit of $7.7 billion or $1.28 per diluted share for Q3 FY14.
  • Product Performance - Apple sold 47,534 units of its iPhones during the quarter bringing in revenues of $31.4 billion, as compared to $19.8 billion of revenues by iPhone in Q3 FY14, growing 59% on a y-o-y basis. However, on a sequential basis, iPhone sales were down by 22%, both in terms of units sold as well as revenues generated. Apple continues to experience declining sales for its iPad. For the reported quarter, Apple sold 10,931 iPads bringing in revenues of $4.5 billion, as against revenues of $5.9 billion clocked by sales of 13,276 units of iPads in Q3 FY14. The Company's Mac grew 9% y-o-y to chalk up sales of 4,796 units generating revenues of $6.0 billion in Q3 FY15 vis-à-vis the 4,413 units accounting for $5.5 billion in revenues in Q3 FY14.
  • Regional Performance - Apple recorded $20.2 billion in revenues in the Americas during the quarter, as compared to $17.6 billion reported in Q3 FY14, growing 15% on a y-o-y basis. However, sequentially the Company saw revenues fall in this region by 5%. Europe accounted for revenues of $10.3 billion as against $8.7 billion for the previous year quarter. In the Greater China region, Apple saw revenues grow by 112% on a y-o-y basis to reach $13.2 billion for Q3 FY15, vis-à-vis $6.2 billion reported for Q3 FY14. With revenues of $2.9 billion in Japan, Apple saw its revenues in the region grow by 9% on a y-o-y basis. Rest of Asia pacific accounted for revenues of $2.9 billion this quarter as against $2.3 billion reported in the previous year quarter.    
  • Management speak - Tim Cook, the CEO of Apple said that it was an amazing quarter for the Company with strong sales of Mac, all-time record revenues from services, driven by the App Store, and a great start for the Apple Watch. He added that the excitement for Apple Music has been incredible and the Company is looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall. Luca Maestri, the CFO of Apple said that the Company generated very strong operating cash flow of $15 billion. He also pointed out that the Company returned $13 billion to shareholders through its capital return program.
  • Guidance for the Next Quarter - Apple provided guidance for its fiscal 2015 fourth quarter. The company expects Q4 revenue between $49 billion and $51 billion; gross margin between 38.5% and 39.5%; operating expenses between $5.85 billion and $5.95 billion; other income/(expense) of $400 million; and tax rate of 26.3%.

To find out how this influences our rating on Apple Inc. read the full report in its entirety here: http://www.aciassociation.com/?c=AAPL

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