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Tue, Dec 22, 2009 - 07:35 AM EST  —  AAPL: 198.23 (+2.80, +1.43%)  |  NASDAQ: 2237.66 (+25.97, +1.17%)

Apple mows down Street, backs up, runs over it again: $9.87B rev., $1.67B profit; sells 3.05M Macs
Monday, October 19, 2009 - 04:33 PM EST

Apple today announced financial results for its fiscal 2009 fourth quarter ended September 26, 2009. The Company posted revenue of $9.87 billion and a net quarterly profit of $1.67 billion, or $1.82 per diluted share. These results compare to revenue of $7.9 billion and net quarterly profit of $1.14 billion, or $1.26 per diluted share, in the year-ago quarter. Gross margin was 36.6 percent, up from 34.7 percent in the year-ago quarter. International sales accounted for 46 percent of the quarter’s revenue.

Analysts consensus' expectations called for EPS of $1.42 on $9.2 billion revenue.

In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone and Apple TV over their estimated economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures for the quarter are $12.25 billion of "Adjusted Sales" and $2.85 billion of "Adjusted Net Income."

Apple sold 3.05 million Macintosh computers during the quarter, representing a 17% unit increase over the year-ago quarter. The Company sold 10.2 million iPods during the quarter, representing an 8% unit decline from the year-ago quarter. Apple sold 7.4 million iPhones in the quarter, representing 7% unit growth over the year-ago quarter.

“We are thrilled to have sold more Macs and iPhones than in any previous quarter,” said Steve Jobs, Apple’s CEO, in the press release. “We’ve got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010.”

“We are delighted with our September quarter and fiscal 2009 results,” said Peter Oppenheimer, Apple’s CFO, in the press release. “For the full year, we grew revenue by 12 percent and net income by 18 percent in extraordinarily challenging times. Looking ahead to the first fiscal quarter of 2010, we expect revenue in the range of about $11.3 billion to $11.6 billion and we expect diluted earnings per share in the range of about $1.70 to $1.78.”

UPDATE, 4:48pm EDT: In after-hours trading, Apple is currently up $16.07, or 8.55%, to $204.12.

MacDailyNews Note: Stay tuned for live notes from Apple's Q4 2009 financial results conference call, beginning at 5pm EDT today.

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Oct 19, 09 - 03:39 pm Comment from: Ian

“We’ve got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010.”

Let the speculation begin. Or at least the tablet rumors! I'm on board...

Oct 19, 09 - 03:40 pm Comment from: occams razor

Chuffin' Nora, that's amazing. I feel some new stuff tomorrow.

Oct 19, 09 - 03:40 pm Comment from: jarrettdailynews

Outstanding, no other.

Oct 19, 09 - 03:41 pm Comment from: Mark

This pleases me greatly.

Oct 19, 09 - 03:43 pm Comment from: David

Keep up the excellent work Apple!

Oct 19, 09 - 03:44 pm Comment from: FloydPink

Now that's what I call rounding

Oct 19, 09 - 03:44 pm Comment from: AAPL owner

Can we please now put the myth that AAPL always drops after earnings to rest?

Oct 19, 09 - 03:46 pm Comment from: MacFan

Strong holliday lineup ... WHERE ARE THE NEW iMACS and BOOKs and MINIs ?!?!?! Really, I have to wait till next year :( Wahhhhhhhhhhh!!!!!!!!!!!

Oct 19, 09 - 03:47 pm Comment from: Cascadians

They'll make even more $$$$ if (it's taking way too long!) they finally release the new iMac, depending on specs of course.

I've been drooling itching and slobbering to buy one, 24" beautiful bigness, finally get a good desktop screen, been squinting at iBook G4 for 4 1/2 years.

A little scary, maybe should wait for 2010, sounds like a blockbuster year.

Oct 19, 09 - 03:47 pm Comment from: Touch

IT IS A ROUNDING ERROR!!!!

SB

Oct 19, 09 - 03:48 pm Comment from: TheConfuzed1

Watch the Microsoft fanboys cling to that but about declining iPod sales.

They'll try to attribute that to the Zune HD, rather than the iPhone, which is the real reason for this.

Oct 19, 09 - 03:48 pm Comment from: Mormegil

Let the chair-throwing begin!

Oct 19, 09 - 03:49 pm Comment from: Locutus_IX

wooHoo! baby's gonna get a brand new pair of shoes!

Oct 19, 09 - 03:49 pm Comment from: TheConfuzed1

Bit, not but. Sorry. Blame the iPhone for that too. wink

Oct 19, 09 - 03:50 pm Comment from: anthony007

WOW, JUST FREAKIN' WOW! Don't know what else to say. So much for the Cramer's theory that it would tank and people would buy tomorrow on the dip. LOL

Oct 19, 09 - 03:50 pm Comment from: Jamie

A nice big fsck you to all the naysayers.

Well done Apple. Simply brilliant.

Oct 19, 09 - 03:53 pm Comment from: Kirk

@AAPL owner

Well, that wasn't so much a myth as it was, generally, a sad reality for quite some time. It seemed to be a reaction to Apple's typical conservative guidance not matching up with analysts' bizarrely over-optimistic guidance estimates. I think we have the recession to thank for taking a lot of volatility out of Apple's stock, along with new SEC attention on some of the nasty profit-taking that could go on by those trying to game the system.

The last several earnings reports have been accompanied by a more rational stock reaction, with AAPL seeing gains on its good news. So, hopefully, that irrational trend we used to see is gone for good.

Oct 19, 09 - 03:54 pm Comment from: ken1w

Mac sales did amazingly well. It may be the first time the percent growth in Mac unit sales (17%) beat the iPhones number (7%), for any quarter compared to year-ago quarter.

After hours trading for AAPL approaching $204...!

Oct 19, 09 - 03:57 pm Comment from: tro

Impossible, Microsoft, Nokia, Motorola, Palm, RIM, they all said that nobody can have a good quarter because of the world crisis... how come???? (sarcasm)

Oct 19, 09 - 03:58 pm Comment from: HughB

Now that is snappy. My oh my. I almost sold at 180. What was I thinking?

Oct 19, 09 - 03:58 pm Comment from: Bruno

Bend over Microsoft. Bend over.

Oct 19, 09 - 03:59 pm Comment from: Jubei

Who's round ass are you talking about now Ballmer? LOL

Oct 19, 09 - 03:59 pm Comment from: stucktrader

i am still sick i sold my shares some time ago.

Oct 19, 09 - 04:01 pm Comment from: NCIceman

One word: WOOT!

Oct 19, 09 - 04:08 pm Comment from: Original Jake

OK, dark lining to this silver cloud: the iPhone unit growth was not impressive. Really, 7% growth in the fast-growing smartphone market could mean that they actually LOST market share. (Anyone have the overall smartphone growth stats for last quarter?) The iPod numbers were expected, while the Mac numbers were spectacular of course. Hopefully, the iPhone roll out in China will goose the iPhone growth numbers soon.
Go Apple!!

Oct 19, 09 - 04:20 pm Comment from: stucktrader

@AAPL owner,

1st off i envy you. I had shares, but switched to options during one of the most volatile trading periods in history. i made AND lost more money than i ever had that AAPL.

but i HAVE owned AAPL buying options pre-earnings and making a bundle. of course profit taking comes quickly.

personally the bear market & bear rally threw me everywhere with whole portfolio. AAPL is one of the recession proof stocks...

All i can say is everyone who has debt... pay it off NOW. Before the next crash (albeit a slower one if that is the appropriate adjective) happens.

Oct 19, 09 - 04:31 pm Comment from: thethirdshoe

@FloydPink

It can happen when you round Up.

Oct 19, 09 - 04:34 pm Comment from: iphone User

I bought and still own AAPL stock when it was in the double digits. Nice little return on my investment. Ride Sally Ride....

Oct 19, 09 - 04:35 pm Comment from: thethirdshoe

@MacFan - "WHERE ARE THE NEW iMACS and BOOKs and MINIs"

They will be updated. They are not "new" products.
The "new"? Well, now for something totally different. LOL

Oct 19, 09 - 04:38 pm Comment from: Mr. Reeee

Excellent!

I bought a bunch of AAPL last year when it was $105. First time I EVER played the Wall Street Casino!

Looking GOOD, Apple!

For me, the biggest thing is that Apple finally broke the 3 MILLION Macs sold mark for one quarter! The Xmas quarter is up next. Great news for the platform!

Oct 19, 09 - 04:38 pm Comment from: The Real Rob

Apple, Inc. is schooling everyone on how to run a business.

Oct 19, 09 - 04:39 pm Comment from: Zune Tang®

I know what you MAC sheep are wondering. What will stop the bleeding? The answer is simple: License Windows 7 before it's too late. Desperate times call for desperate measures. MAC's 30-year old UNIX OS is barely hobbling along and MAC doesn't have the resources to turn that creaky old ship around.

The good thing is Zune Marketplace runs on Windows so you MAC sissies can dump those I-Pods once MAC ships computers with a real OS. Windows 7.

Your potential. Our passion.™

Oct 19, 09 - 04:42 pm Comment from: matt

Ballmer: "It's just rounding errors! You hear? Rounding errors!" (Throws last remaining chair)

Oct 19, 09 - 04:47 pm Comment from: silverhawk

In after hours trading Apple was up to 201.83‎ +11.97‎ (6.30%‎). When does after hours trading close or end?

Oct 19, 09 - 04:48 pm Comment from: Jubei

@Zune Tang®

Is your Grandma going to be at the new Microsloth grand opening in AZ? Will she have brownies like the ones she's getting ready for the Windows 7 Party your having? I'll meet you there. I hear their giving away Zunes and free denture glue for the first 1000 GILF... ewww I had to stop myself. haha

Oct 19, 09 - 04:48 pm Comment from: jjjj

>backs up, runs over it again<

very nice!

Oct 19, 09 - 04:51 pm Comment from: HughB

@silver
Doesn't matter the after market, those are tiny sales. The opening tomorrow will be the real test. I would guess it will be just under 200. Of course I am seldom right.

Oct 19, 09 - 04:57 pm Comment from: Charlie

After hours trading went above $204.00 and then dropping slightly. And like the man said, lots of great new stuff in the pipeline. The weaker dollar even helps Apple. Then you will see a little profit taking before the next bump. Great party and it is not too late to join in.

Oct 19, 09 - 05:01 pm Comment from: Blue Whale

This makes me laugh:

“Your game plan next week is to buy Apple Inc. (NASDAQ:AAPL) on weakness on Tuesday morning,” Jim Cramer said on Friday’s “Mad Money” TV show. He told viewers that Apple analysts will likely be disappointed with the company’s earnings when they report on Monday, due to a little known problem with iPhone production that might keep numbers lower-than-expected. He said the glitch was taken care of at the end of the third-quarter, which will set up Apple for a solid fourth-quarter. Cramer advised viewers to act quickly and buy Apple on Tuesday before AT&T;Inc. (NYSE:T) reports on Thursday because they could follow Apple’s quarter with positive comments about the iPhone that will send Apple shares right back up. “All other data points in next week’s game plan, frankly, dwarfed by this Apple trade,” Cramer said, “and it is a trade I want you in.”

Oct 19, 09 - 05:01 pm Comment from: Raymond in DC

I'm trying to suppress the usual "Why, oh why, didn't I buy MORE when I had the chance?" (I picked up more shares during the last dip at ~90.) All I can say is wow. Just wow!

This news could drive the tech sector higher in tomorrow's trading. Most forget though that AAPL is sui generis, though its suppliers should do well.

Oct 19, 09 - 05:28 pm Comment from: @ZuneTang

Free denture glue?

You ABSOLUTELY kill me!!!!

I'm laughing so hard I'm almost crying.....

Oct 19, 09 - 05:39 pm Comment from: Black Omega

"Back up and runs over it again."

Rule #2
Double Tap!

Black Omega

Oct 19, 09 - 06:12 pm Comment from: Spark

"Apple's fourth-quarter earnings could disappoint, says Oppenheimer analyst Yair Reiner. In spite of generally optimistic predictions elsewhere, the analyst is calling for "slightly disappointing" revenue, and urging investors to avoid buying shares until after Apple issues its report. "

Beware of Yair!

Oct 19, 09 - 06:21 pm Comment from: breeze

Nice one - Spark

Oct 19, 09 - 06:40 pm Comment from: mac gadget freek

my computer feels snappier after seeing those numbers...

Oct 19, 09 - 06:40 pm Comment from: Anonymous©

<<Comment from: Original Jake
OK, dark lining to this silver cloud: the iPhone unit growth was not impressive. Really, 7% growth in the fast-growing smartphone market could mean that they actually LOST market share. >>

Uhm, you do remember that last year, they had just launched the 3G, and they had to rebuild inventory in the channel. That one-time bump added 2M to the actual sell-thru figure. Actual sales a year ago were 4.9M iPhone 3Gs, and shipments were 6.9M.

In this conference call, they said they increased inventory about 500k units, so, actual sell-thru was 6.9M. In comparison of actual sales, you would compare the 6.9 to the 4.9, which is 41% growth in my book.

Oct 19, 09 - 07:26 pm Comment from: MacAdvocate

“Your game plan next week is to buy Apple Inc. (NASDAQ:AAPL) on weakness on Tuesday morning,”

You mean:

“Your game plan next week is drive down Apple Inc. (NASDAQ:AAPL) shares before the Monday call because I want to be snatching it up as cheaply as possible”

Nice call, Jim.

Oct 19, 09 - 09:18 pm Comment from: Scopie

I guess those laptop finder adds were really effective.

Oct 19, 09 - 09:19 pm Comment from: Gabriel

Apple sold 3.05 million Macintosh computers during the quarter, representing a 17% unit increase over the year-ago quarter.

Microsoft sure got their money's worth from those Laptop Hunter ads, didn't they? wink

Oct 19, 09 - 10:50 pm Comment from: Fergman

I am a user and a share holder and this is fantastic. I met a young switcher yesterday in a coffee shop and she was working on a new 15" macBook Pro. She said her mother put her onto the Mac and she could not be happier. Now she wants an iPhone as well. Great to see happy people with their computers. Not something I see with my friends who still persist with the Borg.

Oct 20, 09 - 12:43 am Comment from: macout

I know I "switched" 16 people this year so far. grin

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