Apple Reports All-time Record $18.4 Billion Quarterly Profit In First Quarter 2016
Apple on Tuesday announced financial results for its fiscal 2016 first quarter ending December 26, 2015. The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share. These results compare to revenue of $74.6 billion and net income of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Gross margin was 40.1 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.
Less jolly was the fact that iPad sales in Q1/16 were down 25 percent by volume and 21 percent by revenue year-over-year from already depressed levels.
“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said Tim Cook, Apple’s CEO. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”
“Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment,” observed Luca Maestri, Apple’s CFO. “We generated operating cash flow of $27.5 billion during the quarter, and returned over $9 billion to investors through share repurchases and dividends. We have now completed $153 billion of our $200 billion capital return program.”
Apple is providing the following guidance for its fiscal 2016 second quarter:
• Revenue between $50 billion and $53 billion
• Gross margin between 39 percent and 39.5 percent
• Operating expenses between $6 billion and $6.1 billion
other income/(expense) of $325 million
• Tax rate of 25.5 percent
Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock. The dividend is payable on February 11, 2016, to shareholders of record as of the close of business on February 8, 2016.
Apple will is providing live streaming of its Q1 2016 financial results conference call at http://www.apple.com/investor/earnings-call/, to be available for replay for approximately two weeks.
Source: Apple Inc.