Apple Announces $42.4B Revenue of $7.8B Profit
Apple reported its fiscal Q3 2016 earnings on Tuesday, showing revenue of $42.4 billion and $ 7.8 billion profit, or $1.42 per diluted share. These results compare to revenue of $49.6 billion and net income of $10.7 billion, or $1.85 per diluted share, in the year-ago quarter.
Gross margin was 38% compared to 39.7% in the year-ago quarter. International sales accounted for 63% of the quarter’s revenue. Apple sold 40.4 million iPhones, 9.9 million iPads, and 4.2 million Macs. As usual, no numbers were reported for the Apple Watch or Apple TV.
We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter,” said Tim Cook, Apple’s CEO. “We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June.”
Our Services business grew 19 percent year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record,” said Luca Maestri, Apple’s CFO. “We returned over $13 billion to investors through share repurchases and dividends, and we have now completed almost $177 billion of our $250 billion capital return program.
Apple is providing the following guidance for its fiscal 2016 fourth quarter:
- Revenue between $45.5 billion and $47.5 billion
- Gross margin between 37.5 percent and 38 percent
- Operating expenses between $6.05 billion and $6.15 billion
- Other income/(expense) of $350 million
- Tax rate of 25.5 percent
The Company also announced that its board of directors declared a cash dividend of $.57 per share of the Company’s common stock. The dividend is payable on August 11, 2016 to shareholders of record as of the close of business on August 8, 2016.
Apple will provide live streaming of its Q3 2016 financial results conference call beginning at 2:00PM PST today, Tuesday, July 26, 2016 at www.apple.com/investor/earnings-call/. We’ll report on the highlights of the call later today.