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Apple’s Q4 ’13 Beats With $37.5B Revenue, $7.5B Profit And $8.26 EPS On Strong iPhone Sales

Screen Shot 2013-10-28 at 1.08.51 PM

Apple has just released its fiscal Q4 2013 earnings, reporting $37.5B in revenue, $7.5B in net profit representing $8.26 per share. That marks a y/y growth of 4.2% in Revenue and 4.7% decline in EPS, with net profit down 8.6% y/y.

Apple sold 33.8M iPhones, 14.1M iPads and 4.6M Macs in the quarter, which allowed it to post record Q4 revenue. Analysts had estimated 33.4M iPhones, 14.3M iPads and 4.3M Macs in the quarter. iPhone sales grew 26% to hit another record number. iPad sales were relatively flat. Apple sold a total of 71M iPads in fiscal 2013. Apple sold just 3.5M iPods in the quarter.

“We’re pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones,” said Tim Cook, Apple’s CEO in a statement.

For comparison, Apple brought in $35.3B in revenue last quarter, with $6.9B in profits at $7.47 EPS. Apple is currently down 2% in after-hours trading.

Apple Beats

Apple beat analyst expectations across the board for revenue, posting up record Q4 numbers.

According to Fortune’s collated estimates, street analysts had projected $37.14B in revenue with EPS of $8.16. Estimates put y/y revenue growth at 3% and earnings growth at -6%. By those estimates, Apple missed on earnings but beat on revenue.

WSJ estimates had placed EPS at $7.94, which would give Apple a win in both categories. One difference between the two is that Fortune’s charts take an average of both ‘indie’ analysts and ‘main stream’ financial analysts.

Apple’s own guidance projected revenue at between $34B and $37B, with a gross margin of between 36% and 37%. Apple’s estimates have become increasingly accurate over the past few quarters, ever since it changed the way that it gave guidance. Previously, it had a reputation for severely under-estimating future quarters and it’s taken a bit of time for analysts to adjust to its new more conservative outlook.

Apple finished the quarter with $146.76B cash on hand. Its projections for revenue in Q1 ’14 are between $55 billion and $58 billion with gross margin of between 36.5% and 37.5%.

iPads are flat, Macs Down, iPhone up

iPod sales were down 35% y/y, Macs were down 7% over the same period and iPads were relatively flat. iTunes and software revenues were up 22% and accessories were up 5%.

Even with only a couple of weeks of iPhone sales on the charts, it still accounted for 52% of Apple’s overall sales. The impact of the two new models iPhone 5c and iPhone 5s likely won’t be felt in full until Q1 2014.

The same can be said for the iPad, whose numbers are depressed due to no new model being launched in the period. We’ll see impact from the iPad Air, Retina iPad mini and reduced cost iPad mini in Q1 ’14.

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