Apple Tops Expectations - Ends Unit
Revenue Up 20 Percent and EPS Up 41 Percent to New September Quarter
Apple reported financial results for its fiscal 2018 fourth quarter ended September 29, 2018. The Company posted quarterly revenue of $62.9 billion, an increase of 20 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.91, up 41 percent. International sales accounted for 61 percent of the quarter’s revenue.
Investors were only expecting revenue of $61.5 billion and $2.79 per share in profits. On iPhone sales, Apple noted 46.89 million compared to expectations of 47.5 million.
For all of FY 2018, Apple delivered revenue of $265.6 billion and profits of $11.91 per share which was against the expectation of $264 billion and $11.79 per share.
Going forward, the firm will not disclose the number of sold iPhones, iPads and Mac computers.
Services revenue reached an all-time high of $10 billion. Excluding a one-time favorable adjustment of $640 million recognized in the fourth quarter of fiscal 2017, Services revenue grew from $7.9 billion in the fourth quarter of fiscal 2017 to $10 billion in the fourth quarter of fiscal 2018, an increase of 27 percent.
“We’re thrilled to report another record-breaking quarter that caps a tremendous fiscal 2018, the year in which we shipped our 2 billionth iOS device, celebrated the 10th anniversary of the App Store and achieved the strongest revenue and earnings in Apple’s history,” said Tim Cook, Apple’s CEO. “Over the past two months, we’ve delivered huge advancements for our customers through new versions of iPhone, Apple Watch, iPad and Mac as well as our four operating systems, and we enter the holiday season with our strongest lineup of products and services ever.”
“We concluded a record year with our best September quarter ever, growing double digits in every geographic segment. We set September quarter revenue records for iPhone and Wearables and all-time quarterly records for Services and Mac,” said Luca Maestri, Apple’s CFO. “We generated $19.5 billion in operating cash flow and returned over $23 billion to shareholders in dividends and share repurchases in the September quarter, bringing total capital returned in fiscal 2018 to almost $90 billion.”
Apple is providing the following guidance for its fiscal 2019 first quarter:
gross margin between 38 percent and 38.5 percent
operating expenses between $8.7 billion and $8.8 billion
other income/(expense) of $300 million
tax rate of approximately 16.5 percent before discrete items
Investors were expecting revenue of $93.02 billion.
Apple’s board of directors has declared a cash dividend of $0.73 per share of the Company’s common stock. The dividend is payable on November 15, 2018 to shareholders of record as of the close of business on November 12, 2018.