Apple (NASDAQ: AAPL) released its second quarter FY 15 earnings report yesterday, shortly after trading ended. In yet another record breaking quarter, the Cupertino giant again exceeded Wall St. expectations.
Earnings were fueled by record iPhone and Mac sales, alongside record App Store performance, which CEO Tim Cook lauded: "We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever." During the three month period ending March 28, Apple sold 61.17 million iPhones, bringing in $13.57 billion in revenue, up from $10.22 billion in the year-ago quarter. Sales of the handsets were driven by both international sales (which accounted for 69% of the quarter's revenue) and by people switching to the iPhone from other brands. Revenue was boosted by the higher average selling price of the iPhone, which was $659, up more than $60 from a year ago.
Mac sales, with 4.56 million units sold during the quarter, were up 10% year-over-year, but iPad sales disappointed once again, selling just 12.6 million units for a 23% YOY decrease.
Overall, Apple posted quarterly revenue of $58 billion and quarterly net profit of $13.6 billion ($2.33 per diluted share). That compares to $45.6 billion and net profit of $10.2 billion, or $1.66 per diluted share in the year-ago quarter. Gross margin increased 1.5% from a year ago, to 40.8%In addition to earnings, Apple released Q3 FY15 guidance:
- revenue between $46 billion and $48 billion
- gross margin between 38.5 percent and 39.5 percent
- operating expenses between $5.65 billion and $5.75 billion
- other income/(expense) of $350 million
- tax rate of 26.3 percent
You can watch the earnings call here.
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Apple also announced that its Board of Directors has approved an increase in its capital return program. The company will increase its share repurchasing budget to $140 billion from $90 billion. Additionally, the Board approved an 11% increase in dividends, and declared a $.52 dividend to be paid on May 14th.