Earnings Highlights and Analysis - Apple

LONDON, November 4, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings highlights and analysis on Apple Inc. (NASDAQ: AAPL). On October 20, 2014, the company reported its financial results for Q4 FY14 and fiscal 2014 (period ended September 27, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Apple Inc. During Q4 FY14, the company saw record revenue and earnings on the back of solid iPhone, Mac & App Store sales. Apple's Q4 FY14 net income broadened by $955 million on a Y-o-Y basis and Q4 FY14 diluted EPS increased $0.24 from the preceding year quarter. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q4 FY14, Apple Inc. reported net sales of $42.12 billion, compared to $37.47 billion in the same period last year. The company's net sales during the reported quarter outperformed Bloomberg analysts' forecast of $39.91 billion. The company's international sales accounted for 60% of the quarter's revenue. Gross margin increased marginally to 38% for Q4 FY14, from 37% in the year-ago quarter. Further, the company's total operating expenses were $4.84 billion in Q4 FY14, compared to $3.84 billion in the corresponding quarter last year. Operating income increased to $11.16 billion in Q4 FY14 from $10.03 billion in the prior-year quarter. As a result, the company's net income increased to $8.47 billion, or $1.42 per diluted share in Q4 FY14, from $7.51 billion, or $1.18 per diluted share, in the same quarter a year-ago. The free research on AAPL can be downloaded as in PDF format at:

www.Investor-Edge.com/AAPLFreeReport

For FY14, Apple Inc. reported net sales of $182.79 billion, compared to $170.91 billion in FY13. Gross margin increased to $70.54 billion for FY14, from $64.30 billion a year-ago. Further, the company's total operating expenses were $18.03 billion, compared to $15.30 billion in FY13. Operating income increased to $52.50 billion in FY14 from $49.00 billion last year. As a result, the company's net income rose to $39.51 billion, or $6.45 per diluted share in FY14, from $37.04 billion, or $5.68 per diluted share, in FY13. Analysts from Bloomberg had expected the company to report net income of $38.91 billion, or $6.34 per diluted share, in FY14.

Tim Cook, CEO of Apple Inc., declared that the company's FY14 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus. He further stated the company is heading into the holidays with amazing innovations in its new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite - Apple's strongest product lineup ever. He also mentioned that the Company's management is incredibly excited about Apple Watch and other great products and services in the pipeline for 2015. Sign up and read the free analyst's notes on AAPL at:

www.Investor-Edge.com/AAPL-04112014

Luca Maestri, Apple's CFO, added that the company's strong business performance drove EPS growth of 20% and a record $13.3 billion in cash flow from operations in the September quarter. He informed that Apple continued to execute aggressively against its capital return program, spending over $20 billion in the quarter and bringing cumulative returns to $94 billion.

The company also declared a cash dividend of $0.47 per share of Apple's common stock, which will be payable on November 13, 2014, to shareholders of record as of the close of business on November 10, 2014.

In its guidance for Q1 FY15, Apple expects revenue between $63.5 billion and $66.5 billion. Further, gross margin is estimated to be in the range of 37.5% to 38.5%. The company also estimates its operating expenses to be between $5.4 billion and $5.5 billion, with anticipated other income/(expense) of $325 million. Visit Investor-Edge and access the latest research on AAPL at:

www.Investor-Edge.com/AAPLEarningsCoverage

Stock Performance 

On the following day of the earnings release, October 21, 2014, Apple Inc.'s stock ended the session at $102.47, up 2.72%. Since then, the stock has maintained mostly a positive trend. On the last close, Monday, November 03, 2014, it finished at $109.40, up 1.30%, hitting a new 52-week high of $110.30. A total of 51.93 million shares were traded, which was below its three months average volume of 58.82 million shares. Over the previous three trading sessions and last one month, the company's shares have gained 1.92% and 9.82%, respectively. Also, the stock has surged 36.50% from the beginning of 2014. Shares in Apple Inc. closed above their 50-day and 200-day moving averages of $101.22 and $88.85, respectively. Furthermore, the stock traded at a PE ratio of 17.01 and has a Relative Strength Index (RSI) of 70.41. Complimentary in-depth research on AAPL is available at:

www.Investor-Edge.com/AAPLInsiderTrading

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 4 insider transactions by 2 individuals. On October 21, 2014, Luca Maestri, SVP and CFO at Apple Inc., made two transactions by selling a total of 6,116 shares of the company at an average price of $102.11 per share. Further, on October 30, 2014, Eddy Cue, SVP of Internet Software and Services at Apple Inc., made two transactions by selling a total of 261,935 shares of the company at an average price of $106.79 per share.

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